Assignment: Ratio Analysis
Apply ratio analysis to financial statements.
Introduction
Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.
Ratio analysis is done to compare trends over time.
Ratio analysis is a managerial accounting tool for making and evaluating managerial decisions.
Instructions
Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.
Use the Ratio Analysis Template to complete this assessment. Complete the problems based on the data provided in the template.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment guide criteria:
A) Competency A: Analyze financial statements.
1) Calculate a current ratio.
2) Calculate an acid-test ratio.
3) Calculate the number of days sales are uncollected.
4) Calculate an inventory turnover.
5) Calculate the amount sold per day in the inventory of an entity.
6) Calculate a debt-to-equity ratio.
7) Calculate the number of times interest is earned.
8) Calculate a profit margin ratio.
9) Calculate a total asset turnover.
10) Calculate a return on total assets.
11) Calculate a return on common stockholders' equity.
B) Competency B: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.
Format your assignment according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.