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ACC 291 - Week 9 Assignment

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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 earned;Show 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 Statement;1/1/2008 - 12/31/2008;Revenue $3,249,580.53;Direct Expenses;Salaries & Wages $487,437.08;Vehicle Maintenance $64,991.61;Fuel $20,449.80;Traps & Chemicals $1,378,203.63;$1,951,082.12 $1,951,082.12;Indirect Expenses;Rent $39,338.17;Licenses $2,480.00;Insurance $103,613.43;Administrative Salaries $150,250.00;Commissions $16,991.61;Payroll Taxes $72,014.66;Legal Expenses $12,000.00;Accounting Fees $7,000.00;Office Supplies $7,800.00;Utilities $10,806.40;Advertising Expenses $116,000.00;Bad Debts $122,138.64;Depreciation Expense $94,925.75;Misc. Expense $50,000.00;$805,358.66 $805,358.66;Total Expenses $2,756,440.78 $2,756,440.78;Net Income $493,139.75;1/1/2007 ? 12/31/2007;Revenue;$3,893,027.78;Direct Expenses;Salaries & Wages;$583,954.17;Traps & Chemicals;$1,651,100.81;Fuel;$19,177.32;Vehicle Maintenance;$77,860.56;$2,332,092.85;$2,332,092.85;Indirect Expenses;Rent;$38,192.40;Licenses;$2,480.00;Interest Expense;$0.00;Insurance;$103,613.43;Admin. Salaries;$133,500.00;Commissions;$52,860.49;Payroll Taxes;$84,734.61;Legal Expenses;$12,000.00;Accounting Fees;$7,000.00;Office Supplies;$7,800.00;Utilities;$9,824.00;Advertising Expenses;$81,510.00;Bad Debts;$103,493.45;Depreciation Expense;$94,925.75;Misc. Expenses;$60,000.00;$791,934.13;$791,934.13;$3,124,026.98;$3,124,026.98;Net Income;$769,000.80;Balance Sheet;12/31/2008;Current Assets;Cash $818,440.68;Accounts Receivable $812,395.13;Inventory $205,934.30;Total Current Assets $1,836,770.12;Fixed Assets;Vehicles $268,750.00;Tools $110,953.00;Less Accumulated Depreciation ($284,431.95);Total Fixed Assets $95,271.05;Total Assets $1,932,041.17;Liabilities;Current Liabilities;Accrued Payroll Taxes $36,007.33;Accounts Payable $270,798.38;Total Current Liabilities $306,805.71;Long-Term Liabilities $0.00;Total Liabilites $306,805.71;Stockholders Equity;Common Stock;(1,000,000 authorized shares at $1 par) $70,000.00;Retained Earnings $1,062,095.71;Net Income $493,139.75;Total Stockholders Equity $1,625,235.46;Total Liabilities & Stockholders Equity $1,932,041.17;Balance Sheets;12/31/2007;Current Assets;Cash;$291,703.44;Accounts Receivable;$811,047.45;Inventory;$205,934.30;Total Current Assets;$1,308,685.20;Fixed Assets;Vehicles;$268,750.00;Tools;$110,953.00;Less Accumulated Depreciation;($189,506.20);Total Fixed Assets;$190,196.80;Total Assets;$1,498,882.00;Liabilities;Current Liabilities;Accrued Payroll Taxes;$42,367.31;Accounts Payable;$324,418.98;Total Current Liabilities;$366,786.29;Long?Term Liabilities;Auto Loans;$0.00;Total Long?Term Liabilities;$0.00;Total Liabilities;$366,786.29;Stockholders Equity;Common Stock (1,000,000 authorized shares at $1 par);$70,000.00;Retained Earnings;$293,094.91;Net Income;$769,000.80;Total Stockholders Equity;$1,132,095.71;Total Liabilities & Stockholders Equity;$1,498,882.00

 

Paper#80849 | Written in 18-Jul-2015

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