Imagine you have passed your CPA exam and are now employed by a Fortune® 500 company. Your boss tells you that as part of your new responsibilities you are to create pertinent ratios from the comparative financial statements. Address the checklist items based on the ratios below:

	2015	2016
Current ratio	4.1:1	3.1:1
Acid-test ratio	.9:1	2.8:1
Asset turnover	4.8 times	4.4 times
Net income	increased 40%	down 8%
Earnings per share	$5.30	$4.50

 

Checklist:

• Explain what tools you would use to analyze the following data, and why?
• Then discuss who would use this information.
• Which data illustrates the firm

Answer rating: 100% (QA)

1 We can use comparative analysis to analyze the data to see the level of current assets o... View the full answer