Why each ratio is important for financial decision making

Assignment Help Accounting Basics
Reference no: EM132234929

Assignment: Financial Ratio Analysis

Purpose of Assignment: The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.

Assignment Steps

Select a Fortune 500 Company from one of the following industries:

• Pharmaceutical

• Energy

• Retail

• Automotive

• Computer Hardware

Review the balance sheet and income statement in the company's 2015 Annual Report.

Calculate the following ratios using Microsoft Excel:

• Current Ratio

• Quick Ratio

• Debt Equity Ratio

• Inventory Turnover Ratio

• Receivables Turnover Ratio

• Total Assets Turnover Ratio

• Profit Margin (Net Margin) Ratio

• Return on Assets Ratio

Analyze in 1,050 words why each ratio is important for financial decision making.

Reference no: EM132234929

Questions Cloud

Assemble for healthcare leadership : What information would you assemble for healthcare leadership in your organization to monitor healthcare access?
How oci disclosures provide information about future impact : Explain how OCI disclosures provide information about the future impact on earnings. Give a real world or hypothetical example to tie this concept to business.
How would you notify the employee or all employees : If you did put the employee under surveillance, how would you notify the employee or all employees in that division?
What will be the average cost to bake : The average costs to bake the croissants are $0.90 for 3,000 and $0.85 for 6,000. What will be the average cost to bake 5,200
Why each ratio is important for financial decision making : FIN/571 Purpose of Assignment: The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate.
Enhance business development to include manufacturing : Identify how improvements through Service Behavioral Science can enhance business development to include manufacturing?
Principles of corporate social responsibility : You wish to set high ethical standards in business and follow principles of corporate social responsibility.
What is the selling price : HTC plans to set the selling price for the new men's hat at 200% of direct production cost. If the company is planning to sell 100 hats, what is selling price
How would you stop an interview using an avatar : You cannot violate the suspect's rights even you are using an avatar to question the person. How would you stop an interview using an avatar?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Calculate cost of ending inventory under variable costing

The company sold 79,000 units and there was no beginning inventory. Calculate the cost of ending inventory under absorption costing

  Compute the effect on the net income

A customer has offered to buy 60,000 units for $150 each. Compute the effect on the net income if Bayfield accepts the special order

  Compute the depreciation expense

Compute the depreciation expense for each of the four years.

  Inventory of the laundry

The Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the ..

  Identifies the audit assertion each of the above procedures

Develop a set of guidelines that you would use to determine if it was appropriate to whistleblow in a situation where you considered there may be unethical conduct. Explain in a paragraph the reason for each of the guidelines that you have develop..

  Prepare the required journal entries for restin co

Restin Co. uses the gross method to record sales made on credit. On June 1,2014, it made sales of $50,000 with terms 3/15, n/45. On June 12,2014, Restin received full payment for the June 1 sale. Prepare the required journal entries for Restin Co.

  Record the journal entry to charge materials at standardto

a company produces bird food. during april it produced147 batches of food each batch weighing 100 lbs. to produce this

  What is the marginal impact of advertising on sales

What is the marginal impact of advertising on sales if advertising is increased from $1500 to $1600? What is the marginal impact on sales

  Determine the total overhead to be applied per unit

For 2010, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. Determine the total overhead to be applied

  Calculate debt-to-equity ratios and perform a trend analysis

Calculate debt-to-equity ratios and perform a trend analysis with prior periods, considering known client activities related to debt and equity

  Compute the unit product cost under absorption costing

The company had no beginning or ending inventories. Compute the unit product cost under absorption costing. Show your work

  How foot locker press release relates to earnings quality

Foot Locker said earnings from continuing operations were $38 million, Discuss how Foot Locker's press release relates to its earnings quality

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