Calculate the current ratio and quick ratio
Course:- Accounting Basics
Reference No.:- EM131599511

Assignment Help
Assignment Help >> Accounting Basics

Question: 5-7pgs financial statement analysis of a public company. In this analysis, you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.

Here is a breakdown of the sections within the body of the assignment:

Company Overview

Provide a brief overview of your company (one to two paragraphs at most).  What industry is it in?  What are its main products or services? Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet

This is a three-year, horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis

Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period.  Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry.


Based on your analysis, would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company, as long as you provide support for your position.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Kathy is a self-employed taxpayer working exclusively from her home office. Before the home office deduction, Kathy has $3,000 of net income. Her allocable home office expen
Insulating fluid (Weibull). For the 38-kV data in Table 4.1, do the following, assuming that time to breakdown has a Weibull distribution. (a) Estimate the Weibull parameter
Write a 350- to 700-word review of the article. Your review should discuss how the SOX Act may affect ethical decision making in today's business environment, and the crimin
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours requ
Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,00
Prepare a flexible budget for next year for Signet Jewelers using three different growth rates (assume absorption costing). Explain how you determined the three growth rates t
During its first year of operations, Collin RayeCorporation had the following transactions pertaining to its common stock.Jan. 10 Issued 80,000 shares for cash at $6 per sha
Diluted Earnings per Share-Convertible Bonds- Compute the basic and diluted EPS for the company for 2008, assuming that the income tax rate is 30%. No changes occurred in the