custom writing services

Need help: Write an email to our support staff support@myprivatementor.com or


whatsapp us

order order
Average score 4.97 out of 5 based on 836 opinions

Ratio Analysis

Assignment 3: Ratio Analysis

By Wednesday, September 14, 2016 solve the problem below, calculate the ratios, interpret the results against the industry average, and fill in the table on the worksheet. Then, provide an analysis of how those results can be used by the business to improve its performance. Turn in your completed work to the M1: Assignment 3 Dropbox by Wednesday, September 14, 2016.

Balance Sheet as of December 31, 2010

Gary and Company

Cash  

$45

 

Accounts payables  

$45

Receivables    

66

 

Notes payables 

45

Inventory

159

 

Other current liabilities 

21

Marketable securities

33

 

Total current liabilities

$111

Total current assets 

$303

 

 

 

Net fixed assets  

147

 

Long Term Liabilities

 

Total Assets  

$450

 

Long-term debt  

24

 

 

Total Liabilities 

$135

 

 

 

 

 

 

Owners Equity

 

 

 

Common stock

$114

 

 

Retained earnings

201

 

 

Total stockholders’ equity

315

 

 

 

Total liabilities and equity

$450

 

Income Statement Year 2010

 

 

Net sales

$795

Cost of goods sold 

660

Gross profit  

135

Selling expenses  

73.5

Depreciation

12

EBIT

49.5

Interest expense  

4.5

EBT

45

Taxes (40%)  

18

Net income

27

 

1. Calculate the following ratios AND interpret the result against the industry average:

Ratio

Your Answer

Industry Average

Your Interpretation
(Good-Fair-Low-Poor)

Profit margin on sales

 

3%

 

Return on assets

 

9%

 

Receivable turnover

 

16X

 

Inventory turnover

 

10X

 

Fixed asset turnover

 

2X

 

Total asset turnover

 

3X

 

Current ratio

 

2X

 

Quick ratio

 

1.5X

 

Times interest earned

 

7X

 

 

2. Analysis:

Give your interpretation of what the ratios calculations show and how the business can use this information to improve its performance. Justify all answers.

 

Assignment 3 Grading Criteria
Maximum Points
Has correctly calculated the ratios.
40
Has correctly analyzed and interpreted the significance of the resulting ratios and suggested actions for improvement.
40
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation
20
Total:
100

 

 

 

NEED TO MAKE AN ORDER? HERE IS HOW IT WORKS

order-process

Need an answer from similar question?Click here and get a solution now

order You have just landed to the most confidential, trustful essay writing service to order the paper from. We have a dedicated team of professional writers who will assist you with any kind of assignment that you have. Your work is handled confidentially with a specific writer who ensures you are satisfied. Be assured of quality, unique and price friendly task delivered in good time when you place an order at our website. banner We have a team of dedicated writers with degrees from all spheres of study. We readily accept all types of essays and we assure you of content that will meet your expectations. Our staff can be reached  via live chat, email or by phone at any given time with prompt response.  

Prices starting at:

High school
Undergrad.(yrs 1-2)
Undergrad.(yrs 3-4)
Master’s
Doctoral
$10 / page
$10/ page
$12/ page
$15 / page
$17/ page

Note: The prices in the table above are applicable to orders completed within 14 days. Kindly see the full price table for more prices..

We urge you to provide as much information as possible to avoid many revisions. Set your deadline, choose your level, give payment information and relax while you track your work. We will deliver your paper on time. Are you in a quagmire and you are unable to complete your assignments? Do you doubt yourself on the quality of the essay you have written? Myprivatementor.com  is here to assist you. We will offer you unmatched quality that is plagiarism free. Place an order at myprivatementor.com  for guaranteed  high grades. order download

we offer gifts to our paper help customersPayment Methods

you can request our services and pay via paypal

we offer gifts to our paper help customersOur Guarantees

  1. Zero plagiarism.
  2. 100% confidentiality.
  3. FREE Reference page
  4. High Quality papers
  5. 24/7 Customer support

Our Testimonials Testimonials

I ordered a 7 page college essay and was delivered on time. Thank you guys I will definitely order again!

9.5
, FL

Our statisticsOur Statistics

  • Orders Completed todate 72387

  • Number of writers 500

  • Satisfied customers 99.7%

  • Returning customers 92.3%

  • Orders placed today 87