1. Uses of Financial Information
Financial statements are summaries of monetary data about an enterprise. The most common financial statements include the balance sheet, the income statement, the ... the supplier's financial statements for some answers. Four easily obtainable ratios are probably sufficient to evaluate a supplier's financial health adequately: (1) profit margin, (2) inventory turnover, (3) quick ratio and (4) debt-to-equity. The profit margin (return on sales) should be used in evaluating a supplier the same way was used to evaluate the manager's own ... will not be forced into bankruptcy. As noted earlier, ...
- Word Count: 1755
- Approx Pages: 7
- Grade Level: Undergraduate