1. How liquid is Heavy Duty Tractors? Support your answer with any ratios that you believe are neccesary to justify your conclusion. Also indicate any other information that you would want to have in making a final deternination on its liquidity.
2. in light of the president's comments, should you be concerned about the solvency of Heavy Duty Tractors? support your answer with the neccessary ratios. How does the maturity date of the outstanding debt affect your answers?
3. Has Heavy Duty demonstrated the ability to be a profitable member of the Diversified family? Soppurt your answer with the neccessary ratios.
4. What will you tell your boss? should he recommed to the board of directors that Diversified put in a bid for Heavy Duty Tractors?