Help to fill out charts and create chart for part 2. Have included assessment instructions and templates.

BUS-FP3061 - Fundamentals of Accounting Assessment 5, Part 1 Template 2013 Calculations Current ratio Quick ratio Receivables turnover Inventory turnover Profit margin Asset turnover Return on assets Return on equity Earnings per share Price-earnings Cash Dividend payout Debt ratio Debt-to-Equity Times interest earned 2013 Answers BUS-FP3061 - Fundamentals of Accounting Assessment 5, Part 1 Template Orange Company Income Statement For the Years Ended December 31 2013 Net sales (all on account) Expenses: Cost of Goods Sold Selling and administrative Interest Expense Income Tax Expense Total expenses Net Income 2012 $ 600,000 $ 520,000 $ $ $ $ $ $ 415,000 120,800 7,800 18,000 561,600 38,400 $ $ $ $ $ $ 354,000 114,600 6,000 14,000 488,600 31,400 Additional Data: 1. The common stock recently sold at $19.50 per share. 2. Cash dividends in the amount of $15,400 were paid-out in 2013. Orange Company Balance Sheets December 31 Assets Current Assets Cash Short-term investments Accounts Receivable Inventory Total Current Assets Plant Assets Total Assets Liabilities and Stockholder's Equity Current Liabilities Accounts Payable Income Taxes Payable Total Curent Liabilities Long-term Liabilities Bonds Payable Total Liabilities Stockholder's Equity Common Stock ($5 par value) Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity mpany heets r 31 2013 $ 2012 $ $ $ $ $ 21,000 ### 86,000 90,000 215,000 423,000 638,000 $ $ $ $ $ $ $ 18,000 15,000 74,000 70,000 177,000 383,000 560,000 $ $ $ 122,000 $ 23,000 $ 145,000 $ 110,000 20,000 130,000 $ $ 120,000 $ 265,000 $ 80,000 210,000 $ $ $ $ 150,000 223,000 373,000 638,000 150,000 200,000 350,000 560,000 $ $ $ $ BUS-FP3061 - Fundamentals of Accounting Ratio Current ratio Quick ratio Receivables turnover Inventory turnover Profit margin Asset turnover Return on assets Return on equity Price-earnings ratio Debt ratio Times interest earned Year 1 3.12:1 1.34:1 9.7 times 2.4 times 11.40% 1.21 times 13.70% 28.50% 10.4 times 50.20% 9.6 times Year 2 2.96:1 1.02:1 10.2 times 2.3 times 12.60% 1.22 times 15.40% 29.30% 12.4 times 45.30% 13.0 times Assessment 5-1 instructions This assessment includes two parts. Use the templates provided as you complete each part. Both of the templates are linked in the Resources under the Required Resources heading. Note that for Part 2 you will use the template for data but will create your own document to submit. Part 1: Ratio Analysis Making sense of accounting data on financial statements can be difficult. Thankfully, combining numbers from income statements, balance sheets, and other data provides a starting point to analyze a company's financial results. You now have the opportunity to demonstrate your prowess by identifying and computing financial ratios. Using the Assessment 5, Part 1 Template, analyze and compute the necessary financial ratios. The Financial Statements worksheet in the template contains the income statement, balance sheets, and additional information needed. The Ratio Analysis worksheet contains space for your calculations and answers. Part 2: Interpreting Financial Statement Analysis What does the calculation of a financial statement ratio represent? How does one year compare to another? Is there a trend to the ratio data? Is the trend positive or negative? What can be done to change the trend? These are some of the questions that can be answered when the ratio data is interpreted. For this part of the assessment, demonstrate your ability to interpret the results of a multi-year financial ratio analysis. On the Assessment 5, Part 2 Template you will find selected ratios for a company over a twoyear period. Compare the ratios, and in a separate document (Word or Excel), submit your answers to the following questions: 1. What does the calculation of each ratio represent? 2. How does year one compare with year two, and what trend can be seen when you compare the two years? 3. Is the trend from year one to year two positive or negative? 4. What are the possible reasons for the trend? 5. What recommendations do you have for turning a negative trend to a positive trend? Submit the completed template for Part 1 and the document you created with answers to the questions for Part 2 for this assessment