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Essay specific features
Written by:
Jose H
Date added:
April 21, 2017
Level:
University
Grade:
A
No of pages / words:
1 / 247
Was viewed:
8062 times
Rating of current essay:
Essay content:
If Andy's Pro Forma does not meet the standards set by the loaning institution, even with the newly generated sales, they will not loan the money anyway. They are going to safeguard themselves before doing anything that will result in a default on a loan.
Several ratios that will benefit from this plan fall into the categories of liquidity ratios and profitability ratios...
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The quick ratio, a measure of current assets-inventory/current liabilities, and the current ratio, current assets/current liabilities, will be improved: although the average collection period will be higher using this strategy.
Profitability ratios that will be helped using this strategy will be EBIT to sales, asset turnover, and return on assets...
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