CAN SOMEONE HELP WITH THIS? IT IS UNDER TORO COMPANY

4. Calculate the companys inventory turnover ratio (if applicable) for both this year and the prior year. Show your computations.

This year:

Cost of goods sold = ___________________ =

Average inventory

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the inventory turnover ratio improved or worsened? Explain. Use complete sentences.

Evaluate the companys inventory management. In your answer, consider the type of product(s) the company makes and sells, the industry in which the company operates and the type of customer it serves. Refer to the information obtained in your research and ratio analysis.

In reviewing the asset section of the balance sheet, in which assets does the company have the most significant investment?

B) Locate the companys income statement. What is the page on which the income statement appears:_________

5. Calculate the companys gross profit percentage ratio for both this year and the prior year. Show your computations.

This year:

Gross profit = ___________________ =

Net Sales Revenue

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences.

6. Calculate the companys account receivable turnover ratio for both this year and the prior year. Show your computations. Note: If net credit sales is not available, use net sales.

This year:

Net credit sales = ___________________ =

Average net A/R

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the current ratio improved or worsened? Explain. Use complete sentences.

Comment on the trend in total revenue. Is it increasing or decreasing over the two-year period?

7. Calculate the companys days sales in receivables for both this year and the prior year. Show your computations.

This year:

365 days = ___________________ =

A/R turnover ratio

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the current ratio improved or worsened? Explain. Use complete sentences.

Evaluate the companys receivables collection. In your answer, consider the type of product(s) the company makes and sells, the industry in which the company operates and the type of customer it serves. Refer to the information obtained in your research and ratio analysis.

8. Calculate the companys debt to equity ratio for both this year and the prior year. Show your computations.

This year:

Total liabilities = ___________________ =

Total equity

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences.

Is the company financed primarily with debt or equity? Explain using the information

obtained in your research and analysis.

Is the debt primarily short-term or long-term? Explain.

9. Calculate the companys profit margin ratio for both this year and the prior year. Show your computations.

This year:

Net income = ___________________ =

Net sales revenue

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences.

10. Calculate the companys earnings per share ratio for both this year and the prior year. Show your computations.

This year:

Net income preferred dividends = ___________________ =

Weighted average number of common

shares outstanding

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences

11. Compare your ratios from above to industry averages. A good site to obtain the Industry averages from is www.reuters.com From the Reuters site, click on Markets, then Stocks. Next click on the looking glass and type in your companys name. Click on the blue link for your company. Under the Financials tab your team will find the Industry ratios.

Your company Industry

Current Ratio ____________ __________

Quick Ratio ____________ __________

Debt to Equity Ratio ____________ __________

Inventory Turnover ____________ __________

Accounts Receivable Turnover ____________ __________

Gross Profit Percentage ____________ __________

Profit Margin Ratio ____________ __________

How do the results for your company compare to industry averages? Explain.

To Turn In:

1) Cover page with the following information:

a) Title: Research and Analysis of ___________ 20xx & 20xx Financial Statements

b) Course Information: ACCT 2302 and Section Number

c) Instructors name

d) Group members names

e) Date of Report

2) Research paper covering all requirements/elements listed above.

3) Copy of the financial statements from the annual report, including any pages used to calculate the accounting ratios. You may use the snipping tool and snip the necessary financial information and include those pages in your Research Paper as an appendix or imbed them appropriately in the body of your paper.