BUS 599 Week 6 Assignment, Economics Summary Report (Lemonade Stand)
Apart from profitability and efficiency ratios, liquidity ratios are also important in identifying the ability of a business to meets its current obligations as they fall due. Current ratio determines whether the company current assets are enough to settle the current obligations. For the case of Lemonade stand, the current ratio increased from 5.18 in season 1 to 8.11 in season 2 and to 20.46 in season 3. In all periods, the business will be able to settle its obligations…………..continued
BUS 599 Week 6 Discussion 1, Banks
Does the fact that your bank keeps only a fraction of your account balance in reserve make you uncomfortable? Why don’t people rush to the bank and retrieve their money? How do banks prevent panics from occurring ?
BUS 599 Week 6 Discussion 2, Season Three
Post your income statement, balance sheet, economic profit statement and financial ratios for season one, two and three of your lemonade stand that are going to be used in your economic report. Point out two items in your report that you think are most interesting.