Keep the discussion separate. They should be at least 137 words a piece.
Unit 3 Discussion
Topic: Ratio Analysis
Ratio analysis is important for a company to keep a close eye on what is happening within their organization. It can bring to attention any weaknesses or strengths that may be evolving. It is important when there is a red flag of weakness that it is investigated to determine what must be repaired to bring it back to the positive.
The information used in ratio analysis comes from the financial statements, and if that information is not true to what is really happening, this will result in erroneous ratios being analyzed. When performing a company analysis, you have to assume that the given information is true and correct. If it is not, this could affect the company’s bottom line.
Discuss at least three limitations of ratio analysis.
Unit 4 Discussion
Topic: Basic Time Value of Money
It is a common fact that many lottery winners are broke sooner rather than later. If you won a $1,000,000 lottery, would you want to collect the lump sum winnings today or receive the monies over time? How does your decision influence the ultimate amount of cash you will collect? Explain the TVM factors you would consider as you make this decision.
