Compute the current ratio and quick ratio

Assignment Help Financial Accounting
Reference no: EM135454

Write a five-to seven-page financial statement analysis of a public corporation, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will show the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the subsequent sections: introduction, company overview, ratio analysis, horizontal analysis, final recommendation, and conclusions.

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

Company Overview

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

Horizontal Analysis of Income Statement and Balance Sheet

Purpose a three-year horizontal analysis of the income statement and balance sheet of your selected company. Show the importance and meaning of horizontal analysis. Show both the positive and negative trends shown in your company.

Ratio Analysis

Compute the current ratio, quick ratio, cash to existing liabilities ratio, over a two-year period. Show and interpret the ratios that you evaluated. Show potential liquidity issues based on your calculations of the existing and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Show 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.

Reference no: EM135454

Questions Cloud

Cost of goods sold calculations : Show the corrected Cost of Goods Sold calculations for both 2011 and 2012. Consider the errors had not been corrected, in your answer book, in tabular format as shown below show the dollar effect
Prepare a research memo : Bob and Mary have been married for 25 years. They are both college professors. Mary makes $65,000 yearly and Bob makes $75,000 yearly
What abnormality may underlie those conditions : How can you infer what type of volcano erupted in a given area based on type of volcanic deposits now found as layers of rock. What abnormality may underlie those conditions.
Prepare sunday starrs cash budget : Prepare Sunday Starr's cash budget for January and February in columnar format.
Compute the current ratio and quick ratio : Compute the current ratio, quick ratio, cash to existing liabilities ratio, over a two-year period. Show and interpret the ratios that you evaluated.
Which of the effects would you expect to see in cardiac cell : Joe Average has just been frightened by a very loud noise as he was taking a very difficult physiology exam. In response, his adrenal glands have released a large amount of adrenaline into his circulation. Which of the effects would you expect to ..
Evaluate the price and usage variances for direct labor : Evaluate the price and usage variances for direct labor and direct material and compute the material variances
Cytokinesis is unequal during the meiotic divisions : In humans, oogenesis in comparison to spermatogenesis is different in that. cytokinesis is unequal during the meiotic divisions.
What is an expected ratio of purple:white in the progeny : Suppose that P is always completely dominant to any number of p's, and that the locus is close to the centromere. What is an expected ratio of purple:white in the progeny of the next crosses.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Evaluate charger company''s monthly break-even point

Evaluate Charger Company's monthly break-even point and Evaluate the unit sales required to earn a monthly after-tax income.

  Calculate the merchandise inventory values

Calculate the merchandise inventory values

  Effect of accrued interest on financial statements

Evaluate interest expense would be reported on the 2012 income statement? Determine total liabilities would be reported on the 31 st December, 2012, balance sheet?

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Determine her deductions and credits

Determine her deductions and credits allowed and the suspended credits and losses.

  Determine the positions taken by amos and susan

Determine the positions taken by Amos and Susan and by the IRS agent with respect to the Lear jet deduction.

  Evaluate andy''s direct material variances

Evaluate Andy's direct material variances. Determine Andy's direct labor variances.

  Evaluate the amount of the discount on these bonds

Evaluate the amount of the discount on these bonds at issuance? How much net bond interest expense may be recognized over the life of these bonds?

  Evaluate the long-term borrowings in afs balance sheet

Evaluate the long-term borrowings in AF's balance sheet and the related note.

  What is your choice of controller and president reasoning

What is your choice of the controller and president's reasoning? Is the president's order ethical? Who benefits and who is harmed if the organizer follows the president's order?

  What is the future value of investment cash flows

What is the future value of investment cash flows 6 years from today?

  Expected net cash flows

Construct NPV profiles for Project A and B.

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