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Baby Cakes Financial Project Assignment

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Question;(This project is valued at 5% of the final grade.)Financial Statement Analysis provides information that indicates how a company is performing.By comparing financial statements of different years, a manager can make informed decisionsabout investments, expenditures, and activities that impact revenues.Directions: Read the chapter in the text titled Financial Statement Analysis. Using thecomparative financial statements for Baby Cakes International Inc. (seeBabyCakes_Financial_Project_Data.xls linked in the lesson activities), complete thefollowing tasks.Note: The market price of BabyCakes Intl, Inc. common stock was $20 on December 31, 2008.Part A:Complete the 19 ratios listed below.Determine the following measures for 2008:1. Working Capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days sales in receivables6. Inventory turnover7. Number of days sales in inventory8. Ratio of fixed assets to long-term liabilities9. Ratio of liabilities to stockholders equity10. Number of times interest charges earned11. Number of times preferred dividends earned12. Ratio of net sales to assets13. Rate earned on total assets14. Rate earned on stockholders equity15. Rate earned on common stockholders equity16. Earnings per share on common stock17. Price-earnings ratio18. Dividends per share of common stock19. Dividend yieldPart B:Explain what the results of each ratio indicate about the company.Part C:Complete a horizontal analysis for the Income Statement, and explainyour findings.Part D:Complete a vertical analysis for the Income Statement, and explain yourfindings.

 

Paper#48254 | Written in 18-Jul-2015

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