Calculate ratios and obtain industry averages for comparison

Assignment Help Financial Accounting

Reference no: EM131216846

Calculate selected ratios and obtain industry averages for comparison

For each of the six financial statement ratios listed below, use the Key Ratios form (Excel file) to calculate the ratio for the most recent year and for the prior year. siow the ratio or percentage with one decimal point, ror example: “2.1”, “15.7%” (Note that in most testbooks, some of the ratios call for averaging the begdnning and ending balances. However, for this projeet. use only the year’s ending balances.)

After calculating the ratio, find the indwry ratio as sbown in Moncyccntrnl's “Key Ratios” under “Fiaancial Results” and enter the industiy ratio in the indusny Average column of the Key Ratios form. Note that ia Moncycentral’s Key Ratios paee there are sis or seven groups or ratios ia which these ratios might be contained. (It is likely that some of the Mpncycentral’s ratios for your company will be different from the ones you calculute. Yours mwy be correct even though different. but double-check to make sure you are using the correct figures in your calculation.)

(1) Current Ratio

(2) Accounts receivable turnover

(3) Inventory tumnover (not applicable to service companies)

(4) Debt to Equity ratio

(5) Return on Equity

(6) Price earnings ratio (PIE Ratio) [Divide the current market price from a recent newspaper listing by the “basic” earnings-per-share sbown on the most recent year's income statement. Note that the Price/Earnings Ratio (PE Ratio) cbanges daily with the stock price. Submit the completed Key Ratios form (Excel file) for homework credit.

Reference no: EM131216846

Questions Cloud

About the hypothetical transactions : The following hypothetical transactions relate to Nestlé S.A., the Swiss chocolate manufacturer. Indicate whether each transaction immediately gives rise to an asset of the company under U.S. GAAP and separately, under IFRS. Two months prior to its y..

Applying common law contract principles : John, age 16, goes to the internet to purchase some computer software. John locates Ace Inc. Computer Software web site. Ace has the software John wants and John places the order by identifying himself and orders two types of software and agrees to p..

Inventory turnover-receivables turnover-book value per share : Selected financial ratios. The following information pertains to Allbright, Inc. Cash $75,000 Accounts receivable $190,000 Inventory $130,000 Plant assets (net) $650,000 Total assets $1,045,000 Accounts payable $140,000 Accrued taxes and expenses pay..

Financial benefit from company successful goal achievement : Non-profit’s board does not receive any direct benefit from the success of its business. In for-profit companies the stakeholders receive some financial benefit from the company’s successful goal achievement. What does everyone think about this state..

Calculate ratios and obtain industry averages for comparison : Calculate selected ratios and obtain industry averages for comparison. For each of the six financial statement ratios listed below, use the Key Ratios form (Excel file) to calculate the ratio for the most recent year and for the prior year. After cal..

Publicly traded furniture manufacturing : You are the controller of ABC manufacturing corp, a publicly traded furniture manufacturing company, based on Long Island. Business has been going well for ABC. Over the last four quarters the EPS have been 50, 54,59, and 60 cents per share. What cou..

Prepare journal entries for the transactions : Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. Prepare jo..

Prepare the merchandise purchases budget : Aztec Company sells its product for $160 per unit. Its actual and projected sales follow. Units Dollars April (actual) 8,000 $1,280,000 May (actual) 1,800 288,000 June (budgeted) 6,500 1,040,000 July (budgeted) 7,000 1,120,000 August (budgeted) 3,600..

User Account

All Pages