financial statement analysis

Project Description:

in this exercise, you will discuss the impact of cash payment against the accounts
payable on the current ratio of a company. in addition, you will perform a vertical
analysis against the entries listed on the financial statement.
task 1: a company has a current ratio of two. the cfo decides to pay off a portion of its
accounts payable with cash. explain whether the current ratio will increase, decrease, or
remain unchanged. support your answer with appropriate rationale.
task 2: based on the attached financial information, perform a vertical analysis, list the
steps performed, and provide an explanation for your analysis.
year-2010 year-2009
amount in dollars amount in dollars
sales 1,00,000 79,900
cost of goods sold 47,500 39,950
operating expenses 750 500
selling expenses 9,500 9,000
administrative
expenses 12,000 12,000
net income 30,250 18,450
submission requirements:
submit your answers in a microsoft (ms) word file.
font: arial, 12 point, double-spaced
Skills Required:
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