ACC291 WEEK 5 Ratio Analysis Memo

User Generated

oneinm

Business Finance

Question Description

Resources: Virtual Organizations

Click the Virtual Organization link on the student website to access the Virtual Organizations.

Select one of the Virtual Organizations as the basis for the assignment.

Obtain faculty approval of your selected organization before beginning the 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.

Prepare 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?

Please take all the following documents and create it in to one solid paper that fits the instructors needs. 

Week+5+Memo+Analysis.docx 

Team+D-Riordan+Manufacturing+Balance+Sheet.xlsx 

Team+D-RiordanM+IncomeStatement.xls 

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Explanation & Answer

nebbwpu (711)
Cornell University

Anonymous
Great content here. Definitely a returning customer.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4