1. When is debt good to have on your balance sheet? How does debt influence your cash flow? How can we best measure the effects of debt and analyze if an organization has “too much” debt?

2. Based on the liquidity, the short-term asset ratio, and the debt paying ratios discussed in our lecture notes, choose two liquidity, two short-term assets, and two short or long-term debt paying ratios relevant to your Course Project. Explain why the ratios you chose are important to the analysis of your firms. You must discuss six ratios. JP MORGAN and Bank of America