Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Questions - Page 74: 10


a) good b) good c) bad d) bad

Work Step by Step

a) An increase in earnings per share means the company is more profitable. b) A higher current ratio means current assets have increased as compared to current liabilities. c) A higher debt to assets ratio means debt has increased more than assets have increased. d) A decrease in free cash flow means the company has less cash available for operations, investments, and dividends.
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