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
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Ratio Analysis – Unit II Problem 1 A company having the Net working capital of 2.8 Lacs as on 30.06.10 indicates the following financial ratios and performance figures Current Ratio 2.4 Liquidity ratio 1.6 Inventory Turnover 8 (on cost of sales ) Gross Profit on Sales 20% Credit Allowed (months ) 1.5 The company s fixed Assets is equivalent to 90% of its net worth ( Share capital plus reserves ) while reserves amounted
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Investor Ratios There are various ratios that are designed to help investors who hold shares in a company to assess the returns on their investment. These are: Dividend per Share The dividend per share ratio relates the dividends pertaining to an accounting period to the amount of shares in issue during the period. The ratio is given as follows: Dividend per share = Dividends pertaining to a period Number of shares in issue The ratio provides an indication of the cash return
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shows that the current of ratio of Ford is 120 percent while the current ratio of GM is 89 percent. The current ratio measures the company’s ability to pay short term and long term obligations. As Ford has the higher current ratio over GM‚ it depicts that Ford is more capable of paying its obligations to the creditors. The quick ratio of Ford is 110 percent while GM has 73 percent. Quick ratio is an indicator of company’s short-term liquidity. As Ford has the higher quick ratio over GM‚ it shows that
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Session 15: Limitation of Ratio Analysis Learning Objective Explain to the participants on the limitation of ratio analysis. Important Termss Creative accounting. Accounting Policies. Limitations of Ratios Accounting Information Different Accounting Policies The choices of accounting policies may distort inter company comparisons. Example IAS 16 allows valuation of assets to be based on either revalued amount or at depreciated historical cost. The business may opt not to revalue
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Nicole Mrs. Rogers English Honors II 2 April‚ 2012 Success in Children and Adults with ADHD/ ADD vs. Average Children It is easy to peek into the average classroom and make assumptions of the students such as motivated‚ creative‚ organized‚ and sometimes lazy but they usually do not take the time to figure out why. Many people look at the distracted child and see them as "lazy"‚ but what many do not know is that a small number of these children are effected with either ADHD or ADD. To be exact
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Recommendation I recommend that proposal 2 should be chosen‚ because it has maximum profit. It also has the best margin of safety and contribution/sales ratio. In proposal 2‚ an additional product W is added to the mix. So the fixed cost is increased. Although the fixed cost is increased‚ the profit increases sharply. What is noteworthy is that breakeven point is the largest in the 3 situations. It means that the company should take longer time to reach the breakeven point. So the company many
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This essay will review the strengths and limitations of the evaluation approach used for the ACTIVate physical activity intervention. It will also cover recommendations for how the evaluation could be improved. The aim of the evaluation is to assess the effectiveness of the ACTIVate intervention for improving child physical activity levels‚ and to explore the factors that contribute to the observed outcomes. Physical activity interventions are important as it helps promote a better quality of life
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transactions and also can be used as references in various need. To make a proper written communication‚ it needs various essentials. Communicators must have to ensure these essentials to make a proper and clean written communication. There is also some limitation of written communications like expensiveness‚ sluggishness etc. But these
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Describe the limitations and constraints of marketing For this task I will be talking about the how different legal policies can cause problems for different companies and make them have to do things in different ways as to what they would have originally liked to. Legal The first limitation and constraint that I will be talking about will be the legal ones. This would be acts such as the sale and supply of good act. What this means is that when a company is advertising a products to the public
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