Brightspace X New Tab X Q HOME DATA VIEW & Cut Font Name . Font Size . TabStop > Wrap Text "Insert Column "" Delete Column Conditional Formatting Paste LL Copy B ina &u S Overline Merge Cell , 30 Insert Row 3* Delete Row Remove Conditional Formats Table CLICK HERE TO SAVE YOUR WORK F10 M 58 SAIT ACCT 215/1010 Ratio Assignment UM D WN Due date See course schedule Final Submission: 6 Students will receive unique files in which they may prepare their calculations. Final calculations (ratios) and written response must entered into the assignment found in your Brightspace course under Assessments - Tests - Ratio Assignment. The assignment is set to one attempt and unlimited time limit. The assignment must be submitted by due date or a mark of zero will be assigned. SCENARIO 9 You are a bank loan manager and you have had two companies (Arrow and Root) come to your bank, each requesting a 3 year loan. You can only provide one 10 loan so you must decide to which company you provide the loan after performing a ratio analysis. 11 12 REQUIRED 13 14 This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you may complete your calculations and written work prior to transferring your final answers to your Brightspace course under 15 Assessments - Tests - Ratio Assignment. 16 17 Please see the "Student Calculations" tab to complete Parts A, B, C, and D of the assignment. You must input final answers into the Test area. 18 19 20 21 14 4 > Instructions Arrow Root Student Calculations Sheet5 New.. feel acer by wacom S P NBrightspace X New Tab X HOME DATA VIEW k Cut Font Name . Font Size . TabStop 2 Wrap Text Paste Copy Bi "!" Insert Column "" Delete Column & & Us Overline Conditional Formatting Merge Cell 3. Insert Row Delete Row Remove Conditional Formats Table CLICK HERE TO SAVE YOUR WORK D 1 RATIO ASSIGNMENT PART A - RATIO CALCULATIONS (64 marks 3 Which company has Arrow Root Units the more favourable Ratio ratio? 4 LIQUIDITY 6 RECOMMENDATIONS 1. Working Capital: Use Excel formulae to calculate your rati 7 Current Assets - Current Liabilities 991.00 1,190.00 Root and then selecting the appropriate cell(s 8 Please show your answer in millions If a ratio is reported in % form, please ent 10 (i.e.. 5.25 instead of 0.05). 11 2. Current Ratio: 12 Current Assets 1.45 1.59 Root ** *Please be sure to use brackets prope 13 Current Liabilities For example, (5+2+5) / 2 = 6 which is no 14 15 arrow AR 16 3. Quick Ratio: Root 17 Cash + Short-term Investments + Accounts Receivable 1.21 1.33 Root AR 18 Current Liabilities 19 Inventory Arrow 20 21 4. Receivable Turnover: Inventory Root 5.69 4,26 Times Arrow 22 Credit Sales 23 Average (Avg) Accounts Receivable 24 25 26 5. Average Collection Period: 4Instructions Arrow Root Student Calculations Sheet5 New... acer feel woDem ka S P N 19 F6 F2 ESC * Echapp Z' 8 9 8 9 W $ a UT A W f 1 1 # 2 O U 15 A W E R K H F GBrightspace X New Tab X HOME DATA VIEW & Cut Font Name . Font Size - TabStop 2 Wrap Text "" Insert Column "" Delete Column Conditional Formatting Paste Copy B & us Overline Merge Cell . = 3. Insert Row Delete Row Remove Conditional Formats Table CLICK HERE TO SAVE YOUR WORK B G 25 26 5. Average Collection Period: 27 365 64.16 85.58 Days Arrow 28 Receivable Turnover 29 30 31 6. Inventory Turnover: 32 Cost of Goods Sold 1.87 4.96 Time Root 33 Avg Inventory 34 35 36 7. Days in Inventory: 37 365 74.98 73.56 Days Root 38 Inventory Turnover 39 40 SOLVENCY 41 42 8. Debt to Total Assets: 43 Total Liabilities 0.70 0.57 :1 Root 44 Total Assets 45 46 47 9. Times Interest Earned 14.96 6.44 Times Arrow 48 Net Income+Interest Expense+Income Tax Expense 49 Interest Expense 50 51 52 10. Debt to Total Equity: 2.33 1.34 Root 53 Total Liabilities Instructions Arrow Root Student Calculations Sheet5 New... leel acer by wacom ::: S P N 6 F7 F4 ESC Echapp. 9 9 w 0 NO a A t a 6 3 NO a O R W E Q -DIBrightspace X New Tab X HOME DATA VIEW & Cut Font Name - Font Size . TabStop > Wrap Text | Insert Column '" Delete Column Conditional Formatting Paste Copy B a & us overline Merge Cell . = 3- Insert Row Delete Row Remove Conditional Formats Table CLICK HERE TO SAVE YOUR WORK G ' H 48 Net Income+Interest Expense+Income Tax Expense 14.96 6.44 Times Arrow 49 Interest Expense 50 51 52 10. Debt to Total Equity: 53 Total Liabilities 2.33 1.34 Root 54 Total Equity 55 56 PROFITABILITY 57 58 11. Profit Margin: 59 Net Income 47.95 18.37 Arrow 60 Sales 61 Arrow AVG Assets 62 63 12. ROA: 6.91 2.86 Arrow Root AVG assets 64 Net Income 65 Avg Total Assets 66 67 68 13. Asset Turnover: 0.14 0.16 Times Root 69 Sales 70 Avg Total Assets 71 72 73 14. Earnings Per Share (EPS): 29.30 10.76 S Arrow 74 Net Income - Preferred Dividends 75 Weighted Average Number of Shares 1 4 76 1 Instructions Arrow Root Student Calculations Sheet5 New... feel acer woDem ko S P N 12 Verde F7 F8 Nuck ESC F2 chapp. & 8 9 8 2 9 w AtA UT a a E N . 1# O P 15 W E R Q H D G Caps Lock A S Verr, Maj.Brightspace X New Tab X HOME DATA VIEW & Cut Font Name . Font Size - TabStop > Wrap Text 1 1 4 Insert Column ":" Delete Column Conditional Formatting Paste Copy Bina & Us overline 25 Merge Cell . = 3 Insert Row Delete Row Remove Conditional Formats Table CLICK HERE TO SAVE YOUR WORK D G 'H 77 78 15. Price Earnings: 79 Market Price per Share 1.54 1.86 Arrow 80 EPS 81 82 Arrows AVG Shareholders 83 16. Return on Common Shareholders' Equity 84 Net Income - Preferred Dividends 17.93 6.23 Arrow Roots AVG Shareholders 85 Avg Common Shareholders' Equity 86 87 PART B - RATIO ANALYSIS (7 marks) 88 LIQUIDITY 89 Overall, which company has the most favourable liquidity? Root 90 Which liquidity ratios did you use to support your answer above? a N 3 NA In other words, which liquidity ratio 91 Respond with the corresponding number for the ratio and NA 7 92 enter NA if no additional ratios were used. 93 SOLVENCY 94 Overall, which company has the most favourable solvency? Root 95 Which solvency ratios did you use to support your answer above? 1 NA 3 In other words, which solvency ratio 96 Respond with the corresponding number for the ratio and 97 enter NA if no additional ratios were used. 98 PROFITABILITY 99 Overall, which company has the most favourable profitability? Arrow 2 NA In other words, which profitability 100 Which profitability ratios did you use to support your answer above? 101 Respond with the corresponding number for the ratio and 102 enter NA if no additional 103 PART C - CONCLUSION (6 marks) 104 Additional Information - Qualitative factors: 14 4 1 Instructions Arrow Root Student Calculations Sheet5 New... feel acer woDem kq S P N F8 19 F10 ESC chapp ZZ A & a # AtA 8 9 W O N a O 15 6 Q W E R G H Caps Lock A D Verr. MajBrightspace X New Tab X > X C @ B Q HOME DATA VIEW & Cut Font Name . Font Size . TabStop 2 Wrap Text "" Insert Column ":" Delete Column Paste Copy Conditional Formatting Bina& us overline Merge Cell . 3- Insert Row Delete Row Remove Conditional Formats Table CLICK HERE TO SAVE YOUR WORK H 105 Arrow: The company feels strongly about improving its sustainability and ts in sustainability initiatives. In January, a local Indigenous leader became a member of the Board of Directors in order to assist with providing guidance on environmental issues. The 106 company's executive leadership team recently completed intensive training to learn how to foster rsity, and inclusion throughout the organization. Executives have prepared clear policies that include guidance on an inclusive, equitable and diverse workplace. Employees report having a more supportive workplace. The promotion rate ratio is 55% for the last 2 years. The company has added 1 product line this year. Staff turnover has decreased by 1% since last year. 107 Root: The company is working to be more inclusive by ensuring training program are accessible to all including anyone with sight or hearing accommodations. The company recognizes the creativity and energy that are often characteristic of neurodiversity. Thus, the company is recruiting 8 individuals who identify as autistic or have ADHD or both (AuDHD). A distributor of products in supply chain are employing unsafe and unethical practices which violate human rights. Root has taken no action to address these concerns. The company has added 2 product lines this year and increased its sales staff by 5%. The promotion rate ratio is 2%. Which company would you prefer to give the 3 year loan? Explain with a thorough analysis. Please provide a thorough quantitative and qualitative analysis. Quantitative analysis will be your assessment of key ratios that are guiding your decision. 109 You must state the ratios used in determining who gets the loan. (2 marks) Then prepare the qualitative analysis which will use the "additional information" provided above, to assess which company should receive the loan. (2 marks) Provide your final recommendation as to which company should receive the loan. Your recommendation needs to be supported by key points from your analysis. (2 marks) 110 Please type your answer directly in the Brightspace test area. 111 112 PART D - DATA AND TECHNOLOGY (2 marks) 113 114 In 2-3 sentences, describe the concerns you would have if you found out that the companies had upgraded their accounting system this year and 115 the new accounting system was not tested to make sure that the system was storing and processing data correctly? 116 Please type your answer directly in the Brightspace test area. 117 14Instructions Arrow Root Student Calculations Sheet5 New... feel acer woDem ka S P N F7 F8 ESC F2 Echapp. 72 A 9 9 a # -A N a 15 Q W E R