Accounting Project: Current Ratio

In this project, you will assess the financial health of the business in question, using financial analysis tools in your textbook. Please make your work neat and show all computations. For some of your computations, you will be comparing your results with averages of businesses within your business’s industry. For assistance in obtaining industry averages, see the Reference Desk at the library. Attach the sheet(s) obtained which show industry averages to this paper. In some cases, the industry averages sheet may not have the specific ratio, but you may be able to compute the ratio using the information on the industry average sheet. If no industry average is given, but you are able to compute the industry average, please do so. What is the name of the business you are reporting on?Hershey Company |

A popular analysis technique is a trend analysis (also known as Horizontal Analysis), in which you analyze the change over time of specific financial data. This is shown on page 694 of your textbook. Refer to your income statement, prepare a trend analysis of Sales and of Net Income (or Net Loss) for all the years reported. Also, state what page in your annual report has your income statement. 2011 2010 2009Sales $6,080,788 +7% $5,671,009 +7% $5,298,668Net Income $628,962 +23% $509,799 +17% $435,994Pg. 78In your opinion, are the trends in Sales and Net Income good or bad? Please briefly explain your opinion.Both sale and net income trends are good. Both trends increase from 2009 to 2010 as well as 2010 to 2011 showing that sales and net income are increasing. |

The Current Ratio is defined on page 59. Please give a brief definition of the current ratio here.Current Ratio is the