What type of financial ratio might provide insight concern

Assignment Help Operation Management

Reference no: EM13230463

Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She wonders why the owners would be so interested in selling the business if it is such a money maker. Furthermore, the price that they are asking seems high to Mary Ann. Without any formal training in accounting, Mary Ann asks a friend, Rolanda, for advice.

1. The auditor has expressed concerns about the company's ability to pay its bills as they are due. What type of financial ratio might provide insight into this concern?

2. Rolanda suggests that Mary Ann hire an accountant to audit the financial statements. Mary Ann is not sure what an audit involves. Explain auditing.

Reference no: EM13230463

Questions Cloud

Explain the allele and mitosis : What is an allele, What is the krebs cycle and where does it take place and what does it do, Give an overview of Evolution, Give an overview of mitosis

Formulate a network model for problem : Formulate a network model for problem as a minimum-cost flow problem by drawing a network model and formulate and solve a spreadsheet model for problem

Explain what will be the temp of the water when equilibrium : a specific heat of 0.061 cal/g C and at a temp of 99.1C is added to 85.0 grams of water at 23.5C What will be the final temp of the water when equilibrium is reached?

Gastrointestinal disorders : Gastrointestinal Disorders

What type of financial ratio might provide insight concern : The auditor has expressed concerns about the company's ability to pay its bills as they are due. What type of financial ratio might provide insight into this concern?

Design a 4-bit synchronous up-down counter : Design a 4-bit synchronous up/down counter using T flip-flops. The circuit has one input up' /down such that input 0 means count up and input 1 means count down. up' is "up" with a bar over it

Would cliff richards be categorized as theory x or theory y : Would Cliff Richards be categorized as a Theory X or Theory Y manager? Explain.

Manufacturing company as a systems administrator trainee : Assume that you were recently hired by a manufacturing company as a systems administrator trainee. Your first assignment is to develop a paper that communicates the various functions of telecommunications to end users. As a result, you should try to ..

Find values of external resistors for astable multivibrator : determine the values of the external resistors for a 555 timer used as an astable multivibrator with an output frequency of 2 kHz, if the external capacitor C is 3.0 mf and the duty cycle is to be approximately 75%

User Account

All Pages