Acc 291 Week 3

One Saturday afternoon, Hayden went to a car dealership, and bought the 2017 Chevrolet Camaro. Hayden only has $30,000 in his bank account, and the car costs $25,905. Since we are talking about Hayden, everyone just knew he was not going to choose the monthly payments. After spending three hours signing paperwork, he decided to spend the rest of his money at the grocery store. After, a long day spending every single dime he had in his bank account, he comes home to the Electric Company cutting off his power. Hayden forgot to pay his electric bill for this month; he did not want to pay it because JEA charge him $350 a month.

Team A has completed a ratio analysis for Riordan Manufacturing. The team analyzed liquidity ratios, profitability ratios, and solvency ratios. The team also did a horizontal and vertical analysis for company’s balance sheet and the income statement.

Being able to read and understand a business’s financial statements along with the ratios that can be determined via the financial statements is a very important and valuable tool that any investor or anyone interested in business must know and understand how to utilize. Before investing in a company, it is a great idea to review that company’s financial statements, as well as to determine important financial ratios to have a complete understanding of how well financially the company is doing before making any investment into it. As a stockholder in a company, you are part owner of that company, so understanding the bottom line, and how to get to it, as well as what each of the numbers means along the way, is a very smart thing to know and understand before making any investment into a company. This paper will look at financial ratios for the Vanguard Group by analyzing the financial statements dated December 31, 2007 and understanding why these ratios are important to know and understand.

a) Current ratio Abercrombie and Fitch has $1,49 of Current Assets to meet $705 of its Current Liability. It means that the company can solve its debt with its assets. In addition, we can notice that the industry ratio is 2.11, then Abercrombie and Fitch has a worse current ration than the industry, which is 2.30. But it’s bigger than 1 and around two, that’s mean the working capital is positive. In the last four years, the current ratio has grown of 18,13%. b) Quick ratio Abercrombie and Fitch has $1,91 of Quick Assets to meet $705 of its Current Liability. It’s mean the quick ratio is 1.30, then Abercrombie and Fithc has a better ration tjan the industry, which is 1.10. The company will have no problem to borrow from the bank. In the last four years, the quick ratio has grown of 22,23%.

If you were an accountant for a potential investor in this company, explain which of these ratios would be of the most interest to you. In your opinion, what other ratio or ratios beyond the ones listed above should also be considered in an investment context?

Basic EPS = (net income – preferred dividends) / weighted average number of common shares outstanding = 1798.3/(754.6-109.8) = 2.8

The first two chapters of the book present an overview of the three basic financial statements, the balance sheet, income statements and cash flows as well as an outline of the financial ratio analysis. As a demonstration, a ratio analysis of Scotts Miracle-Gro Company is presented and discussed in detail.

The quick ratio of 1.46 is a further analysis into the actual monetary values that are highly liquid and excluding fixed assets as part of the assets. The CFO/Avg. current liabilities also show a healthy 73%, 28% in 2004, on average of which is still higher than the industry.

Using the Wesfarmers Limited Annual report for the Financial Year 2011, we have calculated the key financial analysis ratios including the Liquidity Ratios. Efficiency Ratios, Profitability Ratios, Financing Ratios and Investment Ratios. By utilizing the data provided in the Balance sheet, Income statement, Cash Flow Statement and the Company Performance Overview the above ratios are calculated for both the years 2011 and 2010 and an evaluation is done on the performance of the company.

Calculate D’Leon’s 2009 current and quick ratios based on the projected balance sheet and income statement data. What can

For the year 2015 of PADINI HOLDING BERHAD, although the ratio is a bit lower than last year, but 2.6 times higher is show that the company still have enough finance to cover the long term dept. But for the quick ratio, the increasing in assets of the company makes they can have more ability to cover the immediate dept by 70% more asset then liability. (not include closing inventory)

Quick Ratio (in millions, $) = (Total current assets – Total inventory) / Current liabilities

Endawati, Dr. Izzati Amperaningrum, SE. Graduate Program, Accounting Information System, 2009 Gunadarma University http://www.gunadarma.ac.id Keywords : Stock ABSTRACT : Financial ratio describing a relationship or balance between a certain number with another number. Financial ratio analysis can be used to guide investors and creditors to make decisions or judgments about company achievements and future prospects. One way of processing and interpreting accounting information, which is expressed in relative and absolute terms to describe a particular relationship between the number of one with another figure of a financial

Large numbers of financial ratios can be created to add meaning to financial data of a company. Low values of the current and quick ratios suggest that a Company P had difficulty meeting current obligations in 2010. Financial analysis had been showed that the Company P is severely distressed. In this particular case, insolvency has been a consequence of other factors such as management failures, unrelated diversification strategy and inadequate organization structure.

Cash 25,000 65,000 100,000 170,000 350,000 Total Assets 75,000 115,000 150,000 220,000 400,000 Liabilities Accounts Payable 0 0 0 0 0 Note Payable 75,000 70,000 35,000 0 0 Total Liabilities 75,000 70,000 35,000 0 0 Equity 0 45,000 115,000 220,000 400,000 Year 1 Year 2 Year 3 Year 4 Year 5 Operating Cash 25,000 45,000 115,000 220,000 400,000 Investing