Details of this Paper

I would like you to knock out the question in the...




I would like you to knock out the question in the attached file. and these two questions: In 200 words I need you to answer the following questions. If you have a background in accounting there should not be much reason for resurch. Just answer them off the cuff. Not graded exactly for accuracy. Just need to be in the ball park. 1. Jack McClintock, president of McClintock Industries, wishes to issue a press release to bolster his company?s image and maybe even its stock price, which has been gradually falling. As controller, you have been asked to provide a list of twenty financial ratios along with some other operating statistics relative to McClintock Industries? first quarter financials and operations. Two days after you provide the ratios and data requested, Jeremy Phelps, the public relations director of McClintock, asks you to prove the accuracy of the financial and operating data contained in the press release written by the president and edited by Jeremy. In the press release, the president highlights the sales increase of 25% over last year?s first quarter and the positive change in the current ratio from 1.5:1 last year to 3:1 this year. He also emphasizes that production was up 50% over the prior year?s first quarter. You note that the press release contains only positive or improved ratios and none of the negative or deteriorated ratios. For instance, no mention is made that the debt to total assets ratio has increased from 35% to 55%, that inventories are up 89%, and that while the current ratio improved, the acid-test ratio fell from 1:1 to .5:1. Nor is there any mention that the reported profit for the quarter would have been a loss had not the estimated lives of McClintock?s plant and machinery been increased by 30%. Jeremy emphasized, ?The prez wants this release by early this afternoon.? Who are the stakeholders in this situation? Is there anything unethical in president McClintock?s actions? Should you as controller remain silent? Does Jeremy have any responsibility? 2. What is the purpose of financial statement analysis? What are some of the tools that we can use to analyze financial performance? What should we use to benchmark our performance? Why? What are the different types of financial ratios used to analyze financial performance? Are some ratios more important than others? Why? Which ratios are important to creditors? Which to investors? Which to managers? Why?,You did not fill in the last worksheet


Paper#2878 | Written in 18-Jul-2015

Price : $25