What is the purpose of liquidity ratios

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Reference no: EM133223589

Assignment:

1. What is the purpose of liquidity ratios to you as a business owner and to the bank official who is reviewing your business plan?

2. What does the term Current Ratio mean? How is it calculated? In terms of your business plan, what is the Year 1 current ratio? Show all figures and explain how you calculated them.

3. What does the Debt to Equity ratio measure? How is it calculated? In terms of your business plan, what is the Year 1 Debt to Equity Ratio? Show all figures and explain how you calculated them.

Reference no: EM133223589

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