Source: http://answers.yahoo.com/question/index?qid=20080215185426AACTP6A

2. If a company had sales of $2,587,643 in 1998 and sales of $3,213,456 in 2003, by what percentage did sales change during this time period?

(3213456-2587643) /2587643 = 24.18%

a. If the company had a goal of increasing sales by 25% over a five-year period, did it meet its objectives? Almost met its objective but short by 0.82%

b. If the company had set a goal of increasing sales by 28% during the next five years, what should be the sales goal for 2008?128% (2587643) = 3312183

3. List and briefly describe the five categories of business ratios.

Financial ratios can be divided into five categories: * Liquidity (Solvency) ratios * Financial Leverage (Debt) ratios * Asset Efficiency (Management or turnover) ratios * Profitability ratios * Market value ratios

The liquidity or solvency ratios focus on a firm's ability to pay its short-term debt obligations. As such, they focus on the firm's current assets and current liabilities on the balance sheet.

The most common liquidity ratios are the current ratio, the quick ratio, and the burn rate (interval measure).

The financial leverage or debt ratios focus on a firm's ability to meet its long-term debt obligations. It looks at the firm's long term liabilities on the balance sheet such as bonds.

The most common financial leverage ratios are the total debt ratios, the debt/equity ratio, the long-term debt ratio, the times interest earned ratio, the fixed charge coverage ratio, and the cash coverage ratio.

The asset efficiency or turnover ratios measure the efficiency with which the firm uses its assets to produce sales. As a