9- Which of the following statements about "Cash From Operations/Short Term Liabilities ratio is correct? a) If it is 20% or less, it is risky, an increase in the trend analysis is a positive indicator. b) 40% and above is safe, an decrease in trend analysis is a positive indicator c) O 25% and below is safe, an increase in trend analysis is a positive indicator d) 30% and below is safe, an decrease in trend analysis is a positive indicator

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter5: Risk Analysis
Section: Chapter Questions
Problem 14PC: Refer to the financial state-ment data for Abercrombie Fitch in Problem 4.25 in Chapter 4. Exhibit...
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9. Which of the following statements about "Cash From Operations/Short Term Liabilities ratio is correct?
a)
If it is 20% or less, it is risky, an increase in the trend analysis is a positive indicator.
b)
40% and above is safe, an decrease in trend analysis is a positive indicator
c)
25% and below is safe, an increase in trend analysis is a positive indicator
d)
30% and below is safe, an decrease in trend analysis is a positive indicator
Transcribed Image Text:9. Which of the following statements about "Cash From Operations/Short Term Liabilities ratio is correct? a) If it is 20% or less, it is risky, an increase in the trend analysis is a positive indicator. b) 40% and above is safe, an decrease in trend analysis is a positive indicator c) 25% and below is safe, an increase in trend analysis is a positive indicator d) 30% and below is safe, an decrease in trend analysis is a positive indicator
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