Assume This Is Your First Day on the Job as the New

question 57

Essay

Assume this is your first day on the job as the new chief financial officer of a midsize company.Identify the three key ratios that you would compute first as you begin to try to understand the financial status of the firm.Explain why you selected the three ratios that you did.

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Definitions:

Depository Institutions

Commercial banks and thrift institutions; financial institutions that accept deposits from the public

Customer Deposits

Funds placed by customers with a company, often in the context of financial services, which may be used for further transactions or withdrawn later.

Maximize Profits

The objective of optimizing the difference between total revenues and total costs to achieve the highest possible financial gain.

Board of Governors

A leading body of a central banking system, such as the Federal Reserve in the United States, responsible for overseeing the bank's policies and operations.