Financial statement ratio analysis -project due at the end

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Financial Statement ratio analysis -Project Due at the end of the Post week.

You have been provided with the financial statements for Grannis Closet for the last three years. Grannie is concerned that her net income has been dropping, and she has hired you to provide a thorough analysis that will explain what is causing this drop in net income. You are also requested to make recommendations for the future. As part of your analysis, you are expected to:

1.      Calculate ratios for the last two years (2005 and 2006).

a.      Current Ratio

b.      Quick Ratio

c.       Accounts Receivable Turnover

d.      Days Sales in Receivables

e.      Inventory Turnover

f.        Days Sales in Inventory

g.      Debt to Equity Ratio

h.      Debt to Assets Ratio

i.        Interest Coverage Ratio

j.        Profit Margin

k.       Return on Assets

l.        Return on Equity

2.      Prepare common sized statements for the 3 years.

3.      Prepare a trend analysis for both the balance sheet (classification totals only) and the income statement.

4.      Discuss the strengths and weakness of the organization that are discovered.

5.      Discuss your recommended future actions.

Reference no: EM13356903

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