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Learning Team A Week 2 SummaryACC/561NameDateInstructorLearning Team A Week 2 SummaryDuring week 2, Learning Team A collectively reflected on the importance of financial stability, collecting data pertinent to a proposals, key components to developing a successful business plan, and persuading an audience. In addition, the team will share personal thoughts and views of new material learned in class. The Big PictureThere are several important topics discussed in chapter 13 such as sustainable income, ratio analysis, quality of earnings, and comparative analysis. These four topics are extremely important for understand and applying financial information. This chapter also discusses computing ratios, such as liquidity ratios, solvency ratios, and profitability ratios. Learning Team A as well as the rest of the class computed these ratios during a discussion this week. Sustainable income can be defined as a measure of the future cash flow a company will have. This is very important information a company must have and understand in order to make decisions on investments and capital.Ratio analysis is a tool used by individuals to conduct a quantitative analysis of information in a companys financial statements (Investopedia, 2012). These ratios, which were discussed in the discussion questions for our class are can be used to understand the performance of the company as the analysis will compare previous years and the current finances of the com

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