Determining the health of the company by company valuation

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Reference no: EM13792094

Financial plans and statements are an important part of identifying how much money is needed and of determining the health of the company through company valuation. Completing financial statements is part of the role of the entrepreneur in raising capital.

Reread "All is Not Paradise in Eden's Garden," parts 1 and 2, found at the end of subsection LO 4 of Chapter 11 in Essentials of Entrepreneurship and Small Business Management.

Assume the role of Shelly Edison. Using the financial statements for Eden's Garden, calculate the following ratios:
Current Ratio
Quick Ratio
Debt Ratio
Times Interest Turnover Ratio
Average Inventory Turnover
Average Collection Period
Average collection period in days
Average Payable Period
Payable period in days
Net Sales to Net Assets
Net Sales to Working Capital
Net Profit on Sales
Net Profit on Equity

What recommendations can you make to the Eden's to improve their company's financial performance in the future?

Your paper should be 3 pages in length and in conformity with guidelines for APA Style. Calculations of the ratios should be shown in an appendix in APA format, while the body of the paper is used for explanations and recommendations.

Reference no: EM13792094

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