Consider why the profitability and liquidity ratios for her restaurant will be important to Jemi. Which is likely to be the most important for the success of Jemi's restaurant? Justify your answer. Profitability ratios: . . . . . . . Liquidity ratios: . . . . . . . Conclusion: . . . . . . .

Justification might include:
- Profitability will be most important as it will tell Jemi if she is getting a good return for her investment in the vegan restaurant business. If the return is low, then she may be better saving her money in the bank where there will be less risk of losing it all. As long as she manages her cash flow forecast carefully then liquidity should not be a problem and will be less important.
- Liquidity will be most important as if the business is not liquid then Jemi will not be able to pay her debts and trade payables will force her to close the restaurant and sell the assets to repay the debts owed.