How do you compute a firms debt ratio

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Reference no: EM133432886

Questions:

1. What is the purpose of an income statement? What are the three numbers that receive the most attention when evaluating an income statement? Why are these numbers important?

2. Why do we need to compare a firm's financial ratio to industry norms?

3. What is the purpose of a balance sheet?

4. What are the major categories of assets and liabilities on a balance sheet? Briefly explain each category

5. How do you compute a firm's debt ratio? What is the significance of this ratio?

Reference no: EM133432886

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