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Analyze financial statement ratios used to measure the financial performance of a business entity. PC-1.1: Engage in a team setting with professional integrity and
Analyze financial statement ratios used to measure the financial performance of a business entity. PC-1.1: Engage in a team setting with professional integrity and respect. Team Project Guidelines Financial statement analysis is the process of analyzing a company's financial statements to make better economic decisions. The process for financial statement analysis includes specific techniques for evaluating risks, performance, and future prospects of an organization. This assignment is separated into three parts and based on a fictitious company. In Part 1, you will use the Balance Sheet and Income Statement to calculate the five categories of ratios. In Part 2, you will calculate and explain the significance of the liquidity, activity, financing, profitability, and market value ratios, and provide a year-to-year comparison of assessed financial trends. In Part 3, you will compose an analytical study to assist the CEO of your company to determine if ABC Company, a technical company dealing with software and hardware, would be a good investment as an acquisition. Part 1 You will use this Excel workbook with two worksheets to assist you in completing this part of the assignment. This Excel workbook is to be submitted with your paper. The first worksheet is the Balance Sheet and Income Statement for ABC Company. You will use the information to complete the assignment. The second worksheet contains a breakdown of categories of ratios where you will complete the calculations for each ratio. You will also enter the formula written out as to what information you have used to do the calculations. You are going to use the five classifications of financial ratios to assess the financial performance of ABC Company.
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