1. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the liquidity ratios and an assessment of the company's ability to maintain liquidity and the management of current assets and current liabilities. Include the proper assessment of outcomes as positive or negative trends when all ratio outcomes are factored as a group. Liquidity Ratios - Current Ratio - Quick Ratio 2. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the activity ratios and an assessment of the company's ability to maintain liquidity. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group. Activity Ratios - Inventory Turnover - Accounts Receivables Turnover - Total Asset Turnover - Average Collection Period 3. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the financing ratios. Include the proper assessment of outcomes as positive or negative trends when all three ratio outcomes are factored as a group. Financing Ratios - Debt Ratio - Debt-to-Equity Ratio - Times interest Earned Ratio In this part of your assignment, you will compose an analytical study reporting your results from Part 1. The CEO of your company is forming a task force to review the financials and present a review for acquisition of ABC Company. Based on ABC 's previous 3 years of financials, determine if this would be a good acquisition. You must form the task force to complete the task. The CEO would like most of the departments to participate in the process. Using each department's area of expertise, what information would each of the following departments contribute to the final decision? Provide a minimum one-paragraph response for each department. - Finance Department - Sales Department - Marketing Department - Human Resources - Legal Department 1. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the liquidity ratios and an assessment of the company's ability to maintain liquidity and the management of current assets and current liabilities. Include the proper assessment of outcomes as positive or negative trends when all ratio outcomes are factored as a group. Liquidity Ratios - Current Ratio - Quick Ratio 2. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the activity ratios and an assessment of the company's ability to maintain liquidity. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group. Activity Ratios - Inventory Turnover - Accounts Receivables Turnover - Total Asset Turnover - Average Collection Period 3. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the financing ratios. Include the proper assessment of outcomes as positive or negative trends when all three ratio outcomes are factored as a group. Financing Ratios - Debt Ratio - Debt-to-Equity Ratio - Times interest Earned Ratio In this part of your assignment, you will compose an analytical study reporting your results from Part 1. The CEO of your company is forming a task force to review the financials and present a review for acquisition of ABC Company. Based on ABC 's previous 3 years of financials, determine if this would be a good acquisition. You must form the task force to complete the task. The CEO would like most of the departments to participate in the process. Using each department's area of expertise, what information would each of the following departments contribute to the final decision? Provide a minimum one-paragraph response for each department. - Finance Department - Sales Department - Marketing Department - Human Resources - Legal Department
