Use the following financial statements of Precision Co. to complete these requirements. 1. Prepare comparative income statements

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Use the following financial statements of Precision Co. to complete these requirements.
1. Prepare comparative income statements showing the percent increase or decrease for the current year in comparison to the prior year.
2. Prepare common-size comparative balance sheets for both years.

3. Compute the following ratios for the current year and identify each one's building block category for financial statement analysis.
a. Current ratio
b. Acid-test ratio
c. Accounts receivable turnover
d. Days' sales uncollected
e. Inventory turnover
f. Debt ratio
g. Debt-to-equity ratio
h. Times interest earned
i. Profit margin ratio
j. Total asset turnover
k. Return on total assets
I. Return on equity

PRECISION COMPANY Comparative Income Statements For Years Ended December 31 Current Yr Sales..... Cost of

PRECISION COMPANY Comparative Year-End Balance Sheets Current Yr At December 31 Assets Current assets Cash..

Stockholders' Equity Common stock, $5 par value.... Retained earnings...... Total stockholders' equity Total

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