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b$.$ Which financial statement would Kate need to evaluate whether Sentiments will be

able to meet its current liabilities?

Answer $4$

Balance Sheet

Which of the following ratios should Kate use in that evaluation?

Answer $5$

None of the list ratios would help in the evaluation

c$.$ Which financial statement would Kate need to evaluate whether Sentiments will be able to

survive over a long period of time?

Answer $6$

Balance Sheet

Which of the following ratios should Kate use in that evaluation?

Answer $7$

Debt$-$to$-$total$-$assets ratio

d$.$ Which financial statement would Kate need to evaluate Sentiments$$ profitability?

Answer $8$

Income Statement

Which of the following ratios should Kate use in that evaluation?

Answer $9$

e$.$ How can Kate determine whether Sentiments had outstanding debt at the end of its most

recent year end?

Answer $10$

Which statement could Kate use to determine the answer to the following questions?

i$.$ Is Sentiments generating enough revenue to cover its expenses $($including interest$)?$

Answer $11$

ii$.$ Is Sentiments generating enough cash from operations to cover debt payments?

Answer $12$

iii. Is Sentiments highly leveraged? HINT: Leverage is the amount of debt a company has

relative to its equity.

Answer $13$

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