ACC291-PATTEN FULLER RATIO ANALYSIS
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
· Profitability ratios
o Asset turnover
o Profit margin
o Return on assets
o Return on common
· Solvency ratios
o Debt to total
o Times interest
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
· 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.