Question
Using the financial information provided on the attached income statement and balance sheet for Lakeside Company, perform the following analytical procedures: Current 1.36 1.36 #
Using the financial information provided on the attached income statement and balance sheet for Lakeside Company, perform the following analytical procedures:
| Current | 1.36 | 1.36 |
| # Days inventory on hand | 93.03 | 100.52 |
| Receivable collection period (days) | 20.63 | 24.71 |
| Debt-to-total-assets | 75% | 75% |
| Times interest earned | 3.58 times | 2.79 times |
| Profit Margin | 2.79% | 2.27% |
| Return on Assets | 8.48% | 6.73% |
| Return on Equity | 33.17% | 26.41% |
What is your overall assessment of the significance of the ratios in 2007 and 2008? What is your overall assessment of the change in ratios from 2007 to 2008?
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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
