Financial Statement Analysis provides information that indicates how a company is performing. By comparing financial statements of different years, a manager can make informed decisions about investments, expenditures, and activities that impact revenues.;Directions: Read the chapter in the text titled ?Financial Statement Analysis.? Using the comparative financial statements for Baby Cakes International Inc. (see ?BabyCakes_Financial_Project_Data.xls? linked in the lesson activities), complete the following tasks.;Note: The market price of BabyCakes Int?l, Inc. common stock was $20 on December 31, 2008.;Part A: Complete the calculations for the 19 items listed below.;Determine the following measures for the year 2008;1. Working Capital;2. Current ratio;3. Quick ratio;4. Accounts receivable turnover;5. Number of days? sales in receivables;6. Inventory turnover;7. Number of days? sales in inventory;8. Ratio of fixed assets to long-term liabilities;9. Ratio of liabilities to stockholders? equity;10.Number of times interest charges earned;11.Number of times preferred dividends earned;12.Ratio of net sales to assets;13.Rate earned on total assets;14.Rate earned on stockholders? equity;15.Rate earned on common stockholder?s equity;16.Earnings per share on common stock;17.Price-earnings ratio;18.Dividends per share of common stock;19.Dividend yield;Part B: Explain what the result of each measure indicates about the company.;Part C: Complete a horizontal analysis for the Income Statement, and explain your findings.;Part D: Complete a vertical analysis for the Income Statement, and explain your findings.
Paper#75489 | Written in 18-Jul-2015Price : $57