Evaluate the financial performance of a company

Assignment Help Managerial Accounting
Reference no: EM131437389

Financial and Managerial Accounting Midterm Examination- Financial Statement Analysis

Part 1 - Financial Analysis

The condensed financial statements of Aries Company for the years 20X5 and 20X6 are presented below.

Aries Company Balance Sheet December 31


20X6

20X5

Current Assets



Cash and Equivalents

£60

£160

Accounts Receivable (net)

720

640

Inventory

1080

800

Prepaid Expenses

60

80

Total Current Assets

1920

1680

Property, Plant and Equipment

1520

1400

Investments

20

20

Intangibles and Other Assets

770

640

Total Assets

4230

3740

Current Liabilities

520

420

Long-Term Liabilities

1720

1440

Stockholders' Equity--common

1990

1880

Total Liabilities and Stockholders' Equity

4230

3740

 

Aries Company Income Statements For the Years Ended December 31


20X6

20X5

Sales Revenue

£6,000

£5,740

Cost and Expenses



 Cost of Goods Sold

4920

4720

Selling and Administrative Expenses

560

500

Interest Expense

160

140

Total Costs and Expenses

5,640

5,360

Income Before Income Tax

360

380

Income Tax Expense

140

150

Net Income

£ 220

£ 230

Compute the following ratios for 20X6 and 20X5.

(a) Current ratio.

(b) Inventory turnover. (Inventory on 12/31/X4 was £652.)

(c) Profit margin ratio.

(d) Return on assets. (Assets on 12/31/X4 were £3,480.)

(e) Return on common stockholders' equity. (Stockholders' equity on 12/31/X4 was £1760.)

(f) Debt to total assets ratio.

(g) Times interest earned.

Critically evaluate your ratio calculations and conclude on the current state of the company.

Word count 500 (+/- 10%)

Part 2 - Performance Evaluation

Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretical explanation of any ratio analysis. No need to recalculate ratios, often the financial reports provides these.

Attach the company financial statements as an appendix to your statement as reference to your work.

Present your findings in a Management Business Report wordage should be 1500 +/10%.

Verified Expert

The said paper is in relation to the ratio analysis.The assignment is divided into two parts.In the first part we have to calculate the different ratio given the financial statement of the company.In the second part we have to discuss about the ratio its impact and usefulness in relation to one company, for which I have selected FedEx.

Reference no: EM131437389

Questions Cloud

The lifo conundrum-convergence of us gaap : “The LIFO Conundrum: Convergence of US GAAP with IFRS and Its Implications on US Company Competitiveness.” In the article, the author describes one implication for the FASB / IASB harmonization of accounting standards: that the IASB does not permit t..
Potential limitations of the assessment and treatment model : The Michigan Alcoholism Screening Test (MAST) is one assessment approach used for assessing in the field of addiction. This test screens alcohol use disorders only. According to Doweiko (2016), MAST is specific to screening "alcohol dependency" ..
Determine value of the expected first year receipt : We know that Billingsgate Battery Company could alternatively invest its money at a rate of 20 per cent a year. How much do you judge the present (immediate) value of the expected first year receipt of £20,000 to be?
Proposal to local retailer to carry specific product : Write a letter of proposal to a local retailer to carry a specific product or provide a specific service. Gather data from friends, family, coworkers and other target market consumers to justify the need for the product in this specific retail locati..
Evaluate the financial performance of a company : MBALN-612 Financial and Managerial Accounting Midterm Examination- Financial Statement Analysis. Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far
Discuss the differences between civil and criminal courts : Discuss the differences between civil and criminal courts. Is the line between these two courts absolutely definitive? If not, what types of cases might "blur the line" between both courts? Can you briefly describe a real world example where a cas..
Discuss the effects of collective trauma : contemplating and discussing the effects of collective trauma upon future generations among American military personnel who have served in combat situations. Use the required reading assignments and other resources to share comparisons and beliefs..
Analysis on the current state of the compensation system : Conduct an analysis on the current state of the compensation system of Google and address the compensation of special groups including executives, role of unions in compensating the employees, any international compensation, and any other extraordina..
Examine different segments of the population : Explain the type of incentive to providers for efficiency in the delivery of healthcare services. Explain who bears financial risk- the provider, the patient or CDHP. Examine different segments of the population describe which socioeconomic group is ..

Reviews

inf1437389

4/26/2017 6:26:10 AM

This is not the thing, these are nothing but the technical problem as happen in excel file, the same was correct when prepared but while sending it something went wrong somewhere. And secondly in respect to attaching annual statement file, it was a genuine miss, I had already downloaded the same and used the same to prepare assignment but forgotten to attach. Moreover your query were responded spontaneously without much wait. Thus problem happens but is corrected with utmost care.

inf1437389

4/26/2017 6:25:45 AM

we are going through this assignment and notice that is ti not current. both part one and two. for part two, the person did not follow the instruction. can you do something about this. I had done the assignment as per instruction only. Only forgot to attach the annual statement for second part. Which I attach hereby.. part-1 question#d, in the Table you have for "Net Income" you have 4,920 and 4,720 which are there same amount for cost of goods sold. can that be explain? Please take a full look at the assignment that was sent me. all most all the tables are correct.

len1437389

3/23/2017 2:18:08 AM

Financial Statement Analysis This is an individual examination. Ground your answer in relevant theory. Make use of references, where appropriate – Use Harvard or APA referencing method. Late submissions are not accepted. Structural elements should include an introduction, main body, and a conclusion Word count guidance: part 1 – 500 +/10%. Business report wordage should be 1500 +/10%. Type of assignment: Excel or Word.

Write a Review

Managerial Accounting Questions & Answers

  This individual assignment is based on the chesters place

this individual assignment is based on the chesters place case which you can download from the readings and resources

  Contrubition margin will decrease as perent of sale

Contrubition margin will decrease as perent of sale is this true or fales and why - variable expenes increase as percent of sale then the

  Costs to register and issue securities

Direct and Indirect combination costs, Costs to register and issue securities.

  Accordance with generally accepted auditing standards

When an audit is made in accordance with generally accepted auditing standards, the independent auditors must:

  Tercer reports the following on one of its products

Tercer reports the following on one of its products. Compute the direct materials price and quantity variances.

  What is the opportunity cost of the president

What is the opportunity cost of the president's decision to stick with both types of grass?

  Cash conversion cycle-cash freed up-pre-tax profit

Primrose Corp has $15 million of sales, $2 million of inventories, $3 million of receivables, and $1 million of payables. Its cost cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 8% rate. What is Primrose'..

  Determine the cost of the following job

Determine the cost of the following job (number 253) using each of the four overhead allocation rates.Job 253

  Uses a perpetual inventory system

Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The correct jour..

  Investment under the equity method

Prepare the correcting entry required on December 31, 20X8, to properly report the investment under the equity method, assuming the books have not been closed. Case Products' dividends were declared in early November and paid in early December each y..

  Computing total cost transferred

Buklin Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,200 units. The costs and percentage completion of these units in beginning inv..

  Calculate the target cost of one carbon fibre road bike

Little River Cycles (LRC) produces and distributes carbon fibre road bikes. Management is eager to take advantage of the growing market for these bikes. Calculate the target cost of one carbon fibre road bike.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd