Acc 291 Essay Example
Ratio Analysis Memo
ACC 291
Ratio Analysis Memo
For this assignment we need to choose a virtual organization and prepare a memo to the CEO to discuss the findings from our ratio calculations and also submit a horizontal and vertical analysis for the balance sheet and the income statement. The virtual organization our team chose was Berry’s Bug Blasters.
Listed first in this paper will be the ratio calculations; liquidity, profitability, and solvency.
Solvency Ratios | Debt to Total Assets Ratio | 2007 | 2008 | $ 366,786.29 | 24.5% | $ 306,805.71 | 15.9% | $ 1,498,882.00 | | $ 1,932,041.17 | | | | | | Times Interst Earned | 2007 | 2008 | Unable to calculate because no interst expenses or income tax reported on financial statements. | | | |
Next is the horizontal and vertical analysis for the balance sheet, which has been condensed. Berry's Bug Blasters | | | Condensed Balance Sheet | | | Horizontal Analysis | | | | 2008 | 2007 | | | Assets | | | | | Current assets | $1,836,770.12 | $1,308,685.20 | $528,084.92 | 40.4% | Fixed assets | $95,271.05 | $190,196.80 | ($94,925.75) | -49.9% | Total assets | $1,932,041.17 | $1,498,882.00 | $433,159.17 | 28.9% | Liabilities and stockholders' equity | | | | | Current Liabilities | $306,805.71 | $366,786.29 | ($59,980.58) | -16.4% | Long-term liabilities | $0.00 | $0.00 | $0.00 | 0.0% | Stockholders' equity | $1,625,235.46 | $1,132,095.71 | $493,139.75 | 43.6% | Total liabilities and stockholders' equity | $1,932,041.17 | $1,498,882.00 | $433,159.17 | 28.9% | | | | | | | | | | | Berry's Bug Blasters | | | Condensed Balance Sheet | | | Vertical Analysis | | | | 2008 | | 2011 | | Assets | | | | | Current assets | $1,836,770.12 | 95.07% | $1,308,685.20 | 87.31% | Fixed assets | $95,271.05 | 4.93% | $190,196.80 | 12.69% | Total assets | $1,932,041.17 | 100.00%
ACC 291
Ratio Analysis Memo
For this assignment we need to choose a virtual organization and prepare a memo to the CEO to discuss the findings from our ratio calculations and also submit a horizontal and vertical analysis for the balance sheet and the income statement. The virtual organization our team chose was Berry’s Bug Blasters.
Listed first in this paper will be the ratio calculations; liquidity, profitability, and solvency.
Solvency Ratios | Debt to Total Assets Ratio | 2007 | 2008 | $ 366,786.29 | 24.5% | $ 306,805.71 | 15.9% | $ 1,498,882.00 | | $ 1,932,041.17 | | | | | | Times Interst Earned | 2007 | 2008 | Unable to calculate because no interst expenses or income tax reported on financial statements. | | | |
Next is the horizontal and vertical analysis for the balance sheet, which has been condensed. Berry's Bug Blasters | | | Condensed Balance Sheet | | | Horizontal Analysis | | | | 2008 | 2007 | | | Assets | | | | | Current assets | $1,836,770.12 | $1,308,685.20 | $528,084.92 | 40.4% | Fixed assets | $95,271.05 | $190,196.80 | ($94,925.75) | -49.9% | Total assets | $1,932,041.17 | $1,498,882.00 | $433,159.17 | 28.9% | Liabilities and stockholders' equity | | | | | Current Liabilities | $306,805.71 | $366,786.29 | ($59,980.58) | -16.4% | Long-term liabilities | $0.00 | $0.00 | $0.00 | 0.0% | Stockholders' equity | $1,625,235.46 | $1,132,095.71 | $493,139.75 | 43.6% | Total liabilities and stockholders' equity | $1,932,041.17 | $1,498,882.00 | $433,159.17 | 28.9% | | | | | | | | | | | Berry's Bug Blasters | | | Condensed Balance Sheet | | | Vertical Analysis | | | | 2008 | | 2011 | | Assets | | | | | Current assets | $1,836,770.12 | 95.07% | $1,308,685.20 | 87.31% | Fixed assets | $95,271.05 | 4.93% | $190,196.80 | 12.69% | Total assets | $1,932,041.17 | 100.00%