When auditing a medium-sized manufacturing corporation with
See attached file.
When auditing a medium-sized manufacturing corporation with two or three divisions, and using ratios to assess going concern, which of many different ratios would be the most useful ones to use?
How do you determine which ratios are the ones that should be used? Calculate at least 5 ratios to assess going concern. My question is how
The following ratios are available:
acid test ratio
gross profit ratio
operating margin ratio
net income ratio
return on total assets ratio
return on equity ratio
Or another approach is which of the following four categories of ratios is appropriate?