Question 1-Accounting part Financial Ratio Topic Calculation part Interpretation part (based on your findings in the calculation
Question:
Question 1-Accounting part
Financial Ratio Topic
Calculation part
Interpretation part (based on your findings in the calculation part)
Example: Given the financial statements : Income statement and Balance Sheet
CA=2,000
CL=1,000
2020
Current ratio=CA/CL
2000/1000=2.00
2019
Current ratio=0.85
The performance in year 2020 is better compared to year 2019. This company manage to pay its short-term obligation more this year compared to the previous year.
Question 2_Finance part
Risk & Return Topic
Stand-alone basis
k^=expected rate of return
∂=standard deviation
Portfolio basis
k^p=expected rate of return on portfolio
∂p=standard deviation on portfolio
Calculation part
Decision making/interpretation part (based on your findings in the calculation part.
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III