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the information contained in your selected organization?s balance sheet and income

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Question;the information contained in your selected organization?s balance sheet and income statement to calculate the following:?Liquidity ratios?Current ratio?Acid-test, or quick, ratio?Receivables turnover?Inventory turnover?Profitability ratios?Asset turnover?Profit margin?Return on assets?Return on common stockholders? equity?Solvency ratios?Debt to total assets?Times interest earnedShow your calculations for each ratio.Create a horizontal and vertical analysis for the balance sheet and the income statement.Write;a 350- to 700-word memo to the CEO of your selected organization in;which you discuss your findings from your ratio calculations and your;horizontal and vertical analysis. In your memo, address the following;questions:?What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company??Which users may be interested in each type of ratio??What does the collected data reveal about the performance and position of the company?Format your memo consistent with APA guidelines.Income Statement1/1/2008 - 12/31/2008Revenue $3,249,580.53Direct ExpensesSalaries & Wages $487,437.08Vehicle Maintenance $64,991.61Fuel $20,449.80Traps & Chemicals $1,378,203.63$1,951,082.12 $1,951,082.12Indirect ExpensesRent $39,338.17Licenses $2,480.00Insurance $103,613.43Administrative Salaries $150,250.00Commissions $16,991.61Payroll Taxes $72,014.66Legal Expenses $12,000.00Accounting Fees $7,000.00Office Supplies $7,800.00Utilities $10,806.40Advertising Expenses $116,000.00Bad Debts $122,138.64Depreciation Expense $94,925.75Misc. Expense $50,000.00$805,358.66 $805,358.66Total Expenses $2,756,440.78 $2,756,440.78Net Income $493,139.751/1/2007 ? 12/31/2007Revenue$3,893,027.78Direct ExpensesSalaries & Wages$583,954.17Traps & Chemicals$1,651,100.81Fuel$19,177.32Vehicle Maintenance$77,860.56$2,332,092.85$2,332,092.85Indirect ExpensesRent$38,192.40Licenses$2,480.00Interest Expense$0.00Insurance$103,613.43Admin. Salaries$133,500.00Commissions$52,860.49Payroll Taxes$84,734.61Legal Expenses$12,000.00Accounting Fees$7,000.00Office Supplies$7,800.00Utilities$9,824.00Advertising Expenses$81,510.00Bad Debts$103,493.45Depreciation Expense$94,925.75Misc. Expenses$60,000.00$791,934.13$791,934.13$3,124,026.98$3,124,026.98Net Income$769,000.80Balance Sheet12/31/2008Current AssetsCash $818,440.68Accounts Receivable $812,395.13Inventory $205,934.30Total Current Assets $1,836,770.12Fixed AssetsVehicles $268,750.00Tools $110,953.00Less Accumulated Depreciation ($284,431.95)Total Fixed Assets $95,271.05Total Assets $1,932,041.17LiabilitiesCurrent LiabilitiesAccrued Payroll Taxes $36,007.33Accounts Payable $270,798.38Total Current Liabilities $306,805.71Long-Term Liabilities $0.00Total Liabilites $306,805.71Stockholders EquityCommon Stock(1,000,000 authorized shares at $1 par) $70,000.00Retained Earnings $1,062,095.71Net Income $493,139.75Total Stockholders Equity $1,625,235.46Total Liabilities & Stockholders Equity $1,932,041.17Balance Sheets12/31/2007Current AssetsCash$291,703.44Accounts Receivable$811,047.45Inventory$205,934.30Total Current Assets$1,308,685.20Fixed AssetsVehicles$268,750.00Tools$110,953.00Less Accumulated Depreciation($189,506.20)Total Fixed Assets$190,196.80Total Assets$1,498,882.00LiabilitiesCurrent LiabilitiesAccrued Payroll Taxes$42,367.31Accounts Payable$324,418.98Total Current Liabilities$366,786.29Long?Term LiabilitiesAuto Loans$0.00Total Long?Term Liabilities$0.00Total Liabilities$366,786.29Stockholders EquityCommon Stock (1,000,000 authorized shares at $1 par)$70,000.00Retained Earnings$293,094.91Net Income$769,000.80Total Stockholders Equity$1,132,095.71Total Liabilities & Stockholders Equity$1,498,882.00

 

Paper#39850 | Written in 18-Jul-2015

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