COMPREHENSIVE$/$SPREADSHEET PROBLEM

$4-24$ RATIO ANALYsis The Corrigan Corporation's $2007$ and $2008$ finsincial statements follow, along with some industry average ration.

a$.$ Asess Corrigan's liquidity position and determine how it compares with peers and how the liquidity position has chianged over time. peers and how its asset mangigement efficiency has changed over time.

c$.$ Assess Corrigan's debt management posilivon and deteriane how it compares with peers and how its dett management has changed over time

d$.$ Asces Corrigan's profitability ratios and detenmine how they compare with peers and how its profitability position has changed over time.

e$.$ Assess Corrigan's market value ratios and determine how its valuation compare with peers and how it has changed over time

f$.$ Calculate Corriganis ROE as well as the industry average ROEE using the DuRent: equation. From this analysis, how does Corrigan'$/$ Imancial positimn rompare with the industry average numbers?

$8.$ What do you think would happen to its ratios if the company initiated cost natting messure that allowed it ta hold lower levels of inventiury and substantially decreased the cost of goods sold? No alkulations are mecessary. Think about which ratios would be affected by danges in these two accounts.

Chapter $4$ Analysis of Financial Statements

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