November 5th, 2020 
Please answer each of the following questions in detail and provide in-text citations in support
of your argument. Include EXAMPLES.
a. Explain the major financial ratios and financial cycles, debt ratio, debt to equity ratio,
return on assets, return on equity, current ratio, quick ratio, inventory turnover, days in
inventory, accounts receivable turnover, accounts receivable cycle in days, accounts
payable turnover, accounts payable cycle in days, earnings per share (EPS), price to
earnings ratio (P/E), and cash conversion cycle (CCC) and state the significance of
each for financial management. Include examples based on a hypothetical balance
sheet and income statement.
b. Can CCC be negative? If so, what does it indicate?
c. Explain working capital and its significance. Evaluate working capital in your example
given in part a of this DQ2.
minimum of three references including the book
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