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Financial Accounting
发布时间：2024-06-21
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Financial Accounting
Practice Financial Statement Analysis Project
Instructions
For this project, you will use the provided financial statements for your company. Take 2020 and 2021 information given and perform the required financial ratios listed below. Compare the ratios of 2020 and 2021 to each other. In comparing the ratios you will need to discuss which year has a better ratio, justify your rationale, and explain your findings in detail in your analysis. Write at least one paragraph discussing your results for each ratio. You can do the assignment directly in this document by editing it and filling out the information then uploading it to Canvas, you may print this document and fill it out by hand and scan it and upload it to Canvas, or take pictures of the completed project with your cell phone and upload it to Canvas.
Part 1:
1) What is the ratio used for, what is its’ purpose?
2) Write out formula
3) Fill out formula using the two years financial statement information for both companies
4) Your interpretation of ratio in at least one paragraph
Part 2: For each of the four categories of ratios, identify what the four categories are, and in your own words, explain the following
1) Who are the main stakeholders?
2) What are they assessing?
3) Why are they assessing it?
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PART 1 Profitability -Earnings Per Share |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Profitability – Return on Assets |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Profitability -Return on Equity |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Profitability -Profit Margin |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Profitability -Gross Margin |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Solvency/Leverage -Debit Ratio |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Solvency/Leverage -Equity Ratio |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Solvency/Leverage -Debt-to-Equity Ratio |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Solvency/Leverage -Times Interest Earned |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Liquidity and Efficiency – Current Ratio |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Liquidity and Efficiency –Acid-Test Ratio |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Liquidity and Efficiency –Accounts Receivable Turnover |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Liquidity and Efficiency –Inventory Turnover Ratio |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Liquidity and Efficiency –Days’ Sales Uncollected |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Liquidity and Efficiency –Days’ Sales in Inventory |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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Liquidity and Efficiency –Total Asset Turnover |
2020 |
2021 |
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Discuss, in at least one paragraph what the ratio is used for and what is its’ purpose |
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Write out formula |
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Using the formula, and showing all your work, record your answer |
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Discuss, in at least one paragraph your interpretation of the ratio |
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