Sable Company is seeking a short-term loan from its local bank. The banker needs assurance that the company will be able to repay the loan. Describe three financial ratios the banker should consider including in the loan approval process. What information does each of your selected ratios provide?
What will be an ideal response?
Answers will vary
The banker needs to assess the short-term debt-paying ability of Sable Company. Consequently, the banker should calculate liquidity ratios.
Students should describe three of the following measures (ratios):
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What is earned value management and how can it be used to monitor project status?
What will be an ideal response?