Calculate the following ratios for your company using the financial statements for the current year and prior
Question:
Calculate the following ratios for your company using the financial statements for the current year and prior year:
- Current Ratio
- Amount of Working Capital (Current Assets – Current Liabilities)
- Net Profit Margin
- Debt-to-Assets Ratio
SHOW ALL WORK and include an analysis for each calculation. (Example: Current Ratio is 2:1. This indicates the company has enough current assets to cover its current liabilities)
2.) For each of the ratios calculated in above part, calculate the percentage change from prior year. Have they improved or declined?
3.) Calculate the following ratios for your company using the financial statements (page number will be provided in email) for the current year only: - Fixed Asset Turnover - Return on Equity SHOW ALL WORK and include an analysis for each calculation (explained in Part 1).
4.) Are net cash flows from operating activities considered healthy or unhealthy in the current year? Why?
5.) Briefly skim the annual report provided to you (do not read the entire report – simply skim through the material) and state ONE interesting fact that you learned about the company from the annual report.
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry