Ratio Analysis Memo- Financial Accounting
Access the information contained in your selected organization’s balance sheet and income statement to calculate the following:
- Liquidity ratios
- Current ratio
- Acid-test, or quick, ratio
- Receivables turnover
- Inventory turnover
- Profitability ratios
- Asset turnover
- Profit margin
- Return on assets
- Return on common stockholders’ equity
- Solvency ratios
- Debt to total assets
- Times interest earned
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
- What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
- Which users may be interested in each type of ratio?
- What does the collected data reveal about the performance and position of the company?
Format your memo consistent with APA guidelines.
— I need the highlighted portion corrected.—
I am attaching the correct ratios- and horizontal balance/income sheets.. also, attaching the memo that was written and is plagiarized.
……………..Answer Preview………………
| Riordan Manufacturing |
Memo
To: |
CEO/President |
From: |
Keri Callaway |
cc: |
[Name] |
Date: |
February 22, 2015 |
Re: |
Ratio Analysis ( Please find attached Vertical/Horizontal Analysis ) |
We took time to go thought the data and analyze it in order to determine the various ratios of the company. Attached please find a copy of the completed ratio analysis for Riordan Manufacturing. The ratios provide detailed company information to various stakeholders who include investors, creditors and employees….
APA
609 words
