Assignment 3: Ratio Analysis – AU FIN401 – Highlight answers in YELLOW!!

  Assignment 3: Ratio Analysis By the due date assigned break the botheration below, account the ratios, adapt the after-effects adjoin the industry average, and ample in the table on the worksheet. Then, accommodate an assay of how those after-effects can be acclimated by the business to advance its performance. Turn in your completed assignment to theSubmissions Area through the end of the day. Balance Sheet as of December 31, 2010 Gary and Company Cash   $45 Accounts payables   $45 Receivables     66 Notes payables  45 Inventory 159 Other accepted liabilities  21 Marketable securities 33 Total accepted liabilities $111 Total accepted assets  $303 Net anchored assets   147 Long Term Liabilities Total Assets   $450 Long-term debt   24 Total Liabilities  $135 Owners Equity Common stock $114 Retained earnings 201 Total stockholders’ equity 315 Total liabilities and equity $450 Income Statement Year 2010 Net sales $795 Cost of appurtenances sold  660 Gross profit   135 Selling expenses   73.5 Depreciation 12 EBIT 49.5 Interest expense   4.5 EBT 45 Taxes (40%)   18 Net income 27 1. Account the afterward ratios AND adapt the aftereffect adjoin the industry average: Ratio Your Answer Industry Average Your Interpretation (Good-Fair-Low-Poor) Profit allowance on sales 3% Return on assets 9% Receivable turnover 16X Inventory turnover 10X Fixed asset turnover 2X Total asset turnover 3X Current ratio 2X Quick ratio 1.5X Times absorption earned 7X 2. Analysis: Give your estimation of what the ratios calculations appearance and how the business can use this advice to advance its performance. Justify all answers. Assignment 4 Grading CriteriaMaximum PointsHas accurately affected the ratios.40Has accurately analyzed and interpreted the acceptation of the consistent ratios and appropriate accomplishments for improvement.40Wrote in a clear, concise, and organized manner; approved ethical scholarship in authentic representation and allegation of sources; displayed authentic spelling, grammar, and punctuation20Total:100 

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