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business 2-25 - • Puts complex information into sharper...

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Accounting continued- Balance sheet- Current Vs. Longterm o Current means an asset that can be turned into money in less than one year. We list current assets, liability, etc in order of liquidity on balance sheets. Analyzing financial statements with ratio analysis Ratios compare one thing to another, relationships, correlation Uses information from financial statements
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Unformatted text preview: • Puts complex information into sharper focus Profit margin = Net income / Sales Return on assets = Net income / assets Return on equity = Net income / equity Liquidity ratios-Current Ratio = current assets/ current liabilities (this tells me the ability to pay off debts that are due in a year with the amount of money you have that year)...
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