You have been asked by the CFO to analyze a prospective customer who has requested sales on
Question:
You have been asked by the CFO to analyze a prospective customer who has requested sales on credit. Use the financial statements for Techno TCL, Inc to calculate the ratios.
Prepare a brief report to the CFO including the calculations and 2-3 sentences interpreting each ratio.
One: Calculate and interpret the following debt ratios: debt ratio, debt-equity ratio, and times interest earned for all three years.
Two: Analyze one of the debt ratios including why the ratio is used and what the actual results for TechnoTCL might indicate.
Three: Calculate and interpret the following profitability ratios: operating profit margin, net profit margin, return on assets, and return on equity for all three years.
Four: Analyze one of the profitability ratios including why the ratio is used and what the actual results for TechnoTCL might indicate.
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley