The purpose of doing a financial analysis

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1. ?(Evaluating liquidity?) Aylward Inc. currently has $2,136, 000 in current assets and $875, 000 in current liabilities. The? company's managers want to increase the? firm's inventory, which will be financed by a? short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.1??

The cost of the additional inventory financed with the? short-term note is ?(Round to the nearest? dollar.)

2. The purpose of doing a financial analysis is all of the following? except:

A. Restating accounting data in relative terms so that comparisons can be made with firms of different sizes and with the same firm over time.

B. To identify some of the financial strengths and weaknesses of a company.

C. To prepare GAAP financial statements.

D. A and B only.

Reference no: EM131814940

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