Small Business Management 6th Edition by Timothy Hatten

Exercise 7

The popularity of soccer as a participation sport attracted Leo Hernandez and Gil Ferguson to open an indoor soccer arena with retail shops selling soccerrelated merchandise. Last year's financial statements for their business OnGoal are shown here. Leo and Gil are hoping to expand their business by opening another facility. However, before they approach banks or potential investors, they need to look closely at what the accounting statements show them.
Pair off and compare your ratios. Discuss which of the ratios look weak and which look positive. Develop a one-page explanation of the company's ratios that you can show to potential lenders.