Resources: Virtual Organizations
Click the Virtual Organization link on the student website to access the Virtual Organizations.
Select one of the Virtual Organizations as the basis for this assignment.
Obtain faculty approval of your selected organization before beginning the assignment.
Access the information contained in your selected organization”s balance sheet and income statement to calculate the following:
• Liquidity ratios
o Current ratioo Acid-test, or quick, ratioo Receivables turnovero Inventory turnover
• Profitability ratios
o Asset turnovero Profit margino Return on assetso Return on common stockholders” equity
• Solvency ratios
o Debt to total assetso 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.Attachments Preview:incomeStatement.pdf Download Attachment
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Kudler Balance Sheet 2003 (1).pdf Download Attachment
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Additional Requirements
Min Words: 350Max Words: 700Level of Detail: Show all workOther Requirements: Please use the income statement and balance sheet in order to successfully complete this assignment. Also show all work for each ratio which includes to calculate the following:
• Liquidity ratios
o Current ratioo Acid-test, or quick, ratioo Receivables turnovero Inventory turnover
• Profitability ratios
o Asset turnovero Profit margino Return on assetso Return on common stockholders” equity
• Solvency ratios
o Debt to total assetso Times interest earned