QuestionAugust 2, 2025

Assignment Details When it comes to understanding the flow of money in business -whether purchasing raw materials, renting a new storefront , building a new operating plant, or producing a product or service -understanding the financial ratios that were introduced this week are essential to good money management skills. In your discussion this week., consider the financial ratio content covered in the instructor video. Discuss the following: Think of a business or organization i that you would like to work with. As a financial manager explain how you would use two specific financial ratios in daily operations to ensure the success of the organization. Consider your peers' responses , and note the things they would do differently from you. Share some of the practices a financial manager would implement. Share any good financial management decisions that you think an organization should incorporate based I on For assistance with your assignment please use

Assignment Details When it comes to understanding the flow of money in business -whether purchasing raw materials, renting a new storefront , building a new operating plant, or producing a product or service -understanding the financial ratios that were introduced this week are essential to good money management skills. In your discussion this week., consider the financial ratio content covered in the instructor video. Discuss the following: Think of a business or organization i that you would like to work with. As a financial manager explain how you would use two specific financial ratios in daily operations to ensure the success of the organization. Consider your peers' responses , and note the things they would do differently from you. Share some of the practices a financial manager would implement. Share any good financial management decisions that you think an organization should incorporate based I on For assistance with your assignment please use
Assignment Details When it comes to understanding the flow of money in business -whether purchasing raw materials, renting a new storefront , building a new operating plant, or producing a product or service -understanding the financial ratios that were introduced this week are essential to good money management skills. In your discussion this week., consider the financial ratio content covered in the instructor video. Discuss the following: Think of a business or organization i that you would like to work with. As a financial manager explain how you would use two specific financial ratios in daily operations to ensure the success of the organization. Consider your peers' responses , and note the things they would do differently from you. Share some of the practices a financial manager would implement. Share any good financial management decisions that you think an organization should incorporate based I on For assistance with your assignment please use

Solution
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Answer

Use the Current Ratio to manage liquidity and the Return on Equity (ROE) to assess profitability and strategic growth. Explanation 1. Identify the Business Context Choose a business or organization you are interested in working with, such as a retail company or manufacturing firm. 2. Select Two Financial Ratios Choose two specific financial ratios relevant to the business operations. Common examples include the **Current Ratio** and **Return on Equity (ROE)**. 3. Explain the Use of Current Ratio The **Current Ratio** is calculated as \text{Current Assets} / \text{Current Liabilities}. It measures the company's ability to pay short-term obligations. As a financial manager, use this ratio to ensure liquidity and manage working capital efficiently. 4. Explain the Use of Return on Equity (ROE) **Return on Equity (ROE)** is calculated as \text{Net Income} / \text{Shareholder's Equity}. It assesses how effectively management is using shareholders' funds to generate profits. Monitor ROE to evaluate profitability and make strategic decisions for growth. 5. Implement Financial Management Practices Implement practices like regular financial analysis, budgeting, and forecasting based on these ratios to maintain financial health and support decision-making.

Explanation

1. Identify the Business Context<br /> Choose a business or organization you are interested in working with, such as a retail company or manufacturing firm.<br /><br />2. Select Two Financial Ratios<br /> Choose two specific financial ratios relevant to the business operations. Common examples include the **Current Ratio** and **Return on Equity (ROE)**.<br /><br />3. Explain the Use of Current Ratio<br /> The **Current Ratio** is calculated as $\text{Current Assets} / \text{Current Liabilities}$. It measures the company's ability to pay short-term obligations. As a financial manager, use this ratio to ensure liquidity and manage working capital efficiently.<br /><br />4. Explain the Use of Return on Equity (ROE)<br /> **Return on Equity (ROE)** is calculated as $\text{Net Income} / \text{Shareholder's Equity}$. It assesses how effectively management is using shareholders' funds to generate profits. Monitor ROE to evaluate profitability and make strategic decisions for growth.<br /><br />5. Implement Financial Management Practices<br /> Implement practices like regular financial analysis, budgeting, and forecasting based on these ratios to maintain financial health and support decision-making.
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