FINANCIAL STATEMENT ANALYSIS INSTRUCTIONS
Follow the attached instructions exactly
Using an Excel spreadsheet* andyour company’s financial statements, compute the following for the most recent two years Current ratio (2,13)
Working capital (not reallya ratio) (2, 13)
Inventory turnover ratio(6, 13)
Accounts Receivableturnover ratio (8, 13)
Debt to total assetsratio (2, 13)
Return on assets (9,13)
Asset turnover ratio (9,13)
Return on equity (11, 13)
Gross profit ratio (5, 13)
Profit margin ratio (5, 13)
Also using the spreadsheet,prepare the following for the mostrecent two years:
Comparative IncomeStatement – Vertical Analysis(Illustration 13.12)
Comparative Balance Sheet –Horizontal Analysis(Illustration 13.11)
Findindustry comparative numbers on the MSN Money website () for the following items calculated in # 2 above:
Current Ratio
Inventory Turnover
Return on Assets
Asset Turnover
Return on Equity
Profit Margin (Net ProfitMargin)
See specific instructions on “IndustryComparative Ratios” in the Project Folder. The industry comparativenumbers should be the most recent available.
. Using theinformation gathered and calculated above, write up an analysis of yourcompany. Begin with a brief history of the company to help the readerunderstand the company. Next include a discussion of the company’s financialperformance as seen through ratios and other calculations, whether favorable orunfavorable. The analysis should also give a conclusion on how thecompany has performed in the past and what its future lookslike.
The analysis is to bewritten by you, not copied from a professional analyst’s work. Whenwriting up the analysis, refer back to the ratios and other calculations aboveto support your conclusions. The data should be analyzed from twodifferent perspectives: across time and across companies (industrydata). Be sure to explain what the calculations mean. The analysisshould be done in a professional manner (typed, double-spaced, 1 margins,10-12 font, proper grammar, appendices, cover page, graphs, references, etc.). The written portion of the paper should be about 2-5 pages.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more