ACC 291 Ratio Analysis (All Parts Answered)
Access the information contained in your selected organizations
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.
