Week 5 – Discussion 2
Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses.
Applying Ratios to a Business
Pathbuilder is being used in this course and this discussion is currently locked. Prior to beginning work on this discussion you must complete the Ratio Analysis, Case A: Increasing Leverage and Return on Equity, Case B: Just-In-Time Inventory, Case C: Working Capital Analysis, and Case D: Corporate Bond Ratings and Financial Ratios modules in the RealizeIt platform. Once the modules are completed and this information has been transferred into the course gradebook this discussion will unlock and you will be able to submit your initial post to the forum.
(Please note that some modules will have prerequisites that must be completed first. You are highly encouraged to start your RealizeIt work early in order to ensure that you have plenty of time to successfully complete all required modules prior to the due dates for your assigned work. If you do not complete any work in the RealizeIt platform, the grade returned from RealizeIt will be a Zero.)
Review the following Evaluating Business Performance: Small Business Case Studies video:
The video focuses on profitability, liquidity, efficiency, and stability of business. Given what you have learned about ratio analysis, choose one of the businesses from the video (Rose Chong Costumes, Anro’s Floor Maintenance, or John Osborne’s Gym and Squash Center) and identify two ratios that would be helpful for the owner of the business to monitor. Be sure to explain what the ratio would tell the owner, and how it can be improved for the business.
Guided Response: Review several of your classmates’ posts. Respond to at least two classmates who have chosen a different business owner and explain whether you would have identified the same ratios as your classmate. What other ratios may be helpful? Do you agree or disagree with their use of the ratio? Explain.
Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread