Sunday, 9 March 2014
Select one of the Virtual Organizations as the basis for this assignment.
Select one of the Virtual Organizations as the basis for this
assignment.
Access the information contained in your selected organization’s balance
sheet and income statement to calculate the following:
• Liquidity ratios
o Current ratio
o Acid-test, or quick, ratio
o Receivables turnover
o Inventory turnover
• Profitability ratios
o Asset turnover
o Profit margin
o Return on assets
o Return on common stockholders’ equity
• Solvency ratios
o Debt to total assets
o Times interest earned
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the
income statement.
Write a 350- to 700-word memo to the CEO of your selected organization
in which you discuss your findings from your ratio calculations and your
horizontal and vertical analysis. In your memo, address the following
questions:
• What do the liquidity, profitability, and solvency ratios reveal about
the financial position of the company?
• Which users may be interested in each type of ratio?
• What does the collected data reveal about the performance and position
of the company?
Format your memo consistent with APA guidelines.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment