Crosby Company has provided the following comparative information: You have been asked to evaluate the historical performance

Question:

Crosby Company has provided the following comparative information:

You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:

Instructions
1. Prepare four line graphs with the ratio on the vertical axis and the years on the horizontal axis for the following four ratios (rounded to one decimal place):

a. Rate earned on total assets
b. Rate earned on stockholders’ equity
c. Number of times interest charges are earned
d. Ratio of liabilities to stockholders’ equity

Display both the company ratio and the industry benchmark on each graph. That is, each graph should have two lines.
2. Prepare an analysis of the graphs in (1).

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-1285743615

26th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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