Watch the “Similar to Problem 10-6A” video located in the Week 3 Video Assignments in WileyPLUS.
Consider the following as you view:
The purpose of this video is to show how to analyze accounts liabilities on the balance sheet and a company’s financial performance using the current ratio, free cash flow, debt to assets ratio, and times interest earned. As you watch this video, please reflect on the process the instructor uses to arrive at the answers and the various explanations provided in the video to help you understand why each step is taken.
In addition, consider how businesses can use debt appropriately while maintaining a good current ratio.