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Bill Gerard, the controller for Quick Turn-Around Co., is using final Year 5 financial numbers to forecast various ratios for Year 6. The directive from
Bill Gerard, the controller for Quick Turn-Around Co., is using final Year 5 financial numbers to forecast various ratios for Year 6. The directive from his boss (Kim Sanford, CFO) is to focus on activity ratios, but Gerard would also like to show one high- level profitability ratio in order to focus the follow-up discussion on managing costs and projected profitability. Gerard also needs to be prepared to explain the key drivers of the changes in the ratios from Year 5 to Year 6. Using the information included within the Resources tab, complete the table below for Quick Turn-Around Co Calculate the required amounts identified in column A for Year 6 and enter your associated response in dollars or as a ratio where applicable (rounded to two decimal places) in column B. .For the ratios identified in column A, determine the primary driver for the change in the ratio from Year 5 and enter the reason in column C using the choices from the drop-down menu
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