Reference no: EM133167196

1. Answer one of the following three questions:
   1. What information is captured on a balance sheet? What can we see when we examine the Vintage Lily's assets?
   2. When you look at the first income statement with Mr. Johnson, you can see that the company generates $94,000 in revenue and has a net income of $29,707.50. What is most impacting the company's net profitability? What would you advise them to do to make their company more profitable?
   3. Using the cash flow statement, how does the money coming into the Vintage Lily from customers and the money coming out of the Vintage Lily to suppliers and employees impact the business?
2. Answer one of the three questions below:
   1. Why is the current ratio important to Mr. Johnson?
   2. Why does Mr. Johnson want to know the Vintage Lily's inventory turnover ratio?
   3. Mr. Johnson wants to know the Vintage Lily's debt-to-owner's equity ratio. Why is this important for a loan approval process?
3. Answer one of the two questions below:
   1. Would you invest in a company that had a return on owners' equity of 5%? Why or why not?
   2. Which ratio would you utilize to determine if a company's debt was too high? Explain.
4. Of the three individual scores you received at the end of the activity, where did you score the highest? Why do you suspect you did so well in this area?
5. Of the three individual scores you received at the end of the activity, where did you score the lowest? From where do you think your weakness in this area originates?