Please someone help me answer these:
1 – Does a higher total liabilities mean a company has a higher chance of not being able to repay its debt and declare bankruptcy? Explain…
2- What relevant information do total assets and total liabilities provide to creditors deciding whether to lend money to one company versus the other? Explain
3 – Does a higher net imncome always mean this company’s operations are more profitable? Explain
4- What relevant information does net income provide to investors who are deciding whether to invest in one company versus the other?