What kind of financial ratio might provide insight, Operation Management

Assignment Help:

Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She wonders why the owners would be so interested in selling the business if it is such a money maker. Furthermore, the price that they are asking seems high to Mary Ann. Without any formal training in accounting, Mary Ann asks a friend, Rolanda, for advice.

1. The auditor has expressed concerns about the company's ability to pay its bills as they are due. What type of financial ratio might provide insight into this concern?

2. Rolanda suggests that Mary Ann hire an accountant to audit the financial statements. Mary Ann is not sure what an audit involves. Explain auditing.


Related Discussions:- What kind of financial ratio might provide insight

Explain does the sarbanes-oxley act effectively, Does the Sarbanes-Oxley Ac...

Does the Sarbanes-Oxley Act effectively protect stakeholders? Why, or why not?

How understanding of consumer behaviour helped groupon grow, How has an und...

How has an understanding of consumer behaviour helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today? What is the Groupon Prom

Explain product-by-value analysis, Prepare a product-by-value analysis for ...

Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager, and his or

Explain how much repayment of principal, Jan sold her house on December 31 ...

Jan sold her house on December 31 and took a $50,000 mortgage as part of the payment. The 10-year mortgage has a 11% nominal interest rate, but it calls for semiannual payments beg

Explain how does this sort of thing happen in organizations, We have all wo...

We have all worked with someone who did not seem to fit the role for which he or she was hired, or did not seem to fit in with the organization, or did not have the right skills fo

Explain what will the last unit cost to build, United Research Associates (...

United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 4,000 hours to complete and cost $30,000

Explain the differences unsecured credit and secured credit, Compare and co...

Compare and contract unsecured credit and secured credit, and explain the key differences. Provide an example for each.

Activities relating to production system designing, Activities Relating to ...

Activities Relating to Production System Designing Decision relating to the production system design is the firm and foremost activity of the production management. This activi

What are disadvantages of delegated sourcing strategies, What are the disad...

What are the disadvantages of using delegated sourcing strategies? Disadvantages of using delegated sourcing: a. Can be a complicated relationship to manage an outsourcer

Explain what laws are applicable to this fact pattern, Marie wrote Ray a ch...

Marie wrote Ray a check for landscaping her front lawn. Marie paid Ray in advance. The check was dated for five days later than the date of issuance. Ray was supposed to start land

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd