alysis, to achieve sound decision-making, solvency and profitability issues were considered. Such tools of analysis help the decision-maker achieve more informed and valid decision. For example, the current ratio tool enabled an accurate picture of short term financial transactions to emerge. This kind of decision-making tool enables management to understand more about the ability of liquid assets to cover liabilities over the short-term. A profitability analysis relying on profit margin (return on sales) also enabled management to understand which factors, like inflation, were causing the downturn in profitability. All of these decision-making considerations help management evolve effective and valid decisions.
We have to take many proposals into consideration in order to reassess Mr. Ashoka’s Forecast for 1990. The following four memos are proposals received by Mrs. Sharma. If we analyze these proposed ideas or courses of action, we
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