Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

dear tutor i need help in the below please explain in details step by step thanks Ground your answer in relevant theory Plagiarism and reproduction

dear tutor i need help in the below please explain in details step by step

thanks

Ground your answer in relevant theory Plagiarism and reproduction of someone elses work as your own will be penalized Make use of references, where appropriate Use Harvard or APA referencing method. Late submissions are not accepted Structural elements should include an introduction, main body, and a conclusion Weight 40% Word count guidance : part 1 500 +/10%. Business report wordage should be 1500 +/10% Type of assignment: Excel or Word Start / Finish : Week 3 4 Learning Outcome Assessed: 1,2,3,4 Submit one single document/file. Part 1 Financial Analysis The condensed financial statements of Aries Company for the years 20X5 and 20X6 are presented below. Aries Company Balance Sheet December 31 20X6 20X5 Current Assets Cash and Equivalents 60 160 Accounts Receivable (net) 720 640 Inventory 1080 800 Prepaid Expenses 60 80 Total Current Assets 1920 1680 Property, Plant and Equipment 1520 1400 Investments 20 20 Intangibles and Other Assets 770 640 Total Assets 4230 3740 Current Liabilities 520 420 Long-Term Liabilities 1720 1440 Stockholders Equity--common 1990 1880 Total Liabilities and Stockholders Equity 4230 3740 Aries Company Income Statements For the Years Ended December 31 20X6 20X5 Sales Revenue 6,000 5,740 Cost and Expenses Cost of Goods Sold 4920 4720 Selling and Administrative Expenses 560 500 Interest Expense 160 140 Total Costs and Expenses 5,640 5,360 Income Before Income Tax 360 380 Income Tax Expense 140 150 Net Income 220 230 Compute the following ratios for 20X6 and 20X5. (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/X4 was 652.) (c) Profit margin ratio. (d) Return on assets. (Assets on 12/31/X4 were 3,480.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/X4 was 1760.) (f) Debt to total assets ratio. (g) Times interest earned. Critically evaluate your ratio calculations and conclude on the current state of the company. Word count 500 (+/- 10%) Part 2 Performance Evaluation Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretical explanation of any ratio analysis. No need to recalculate ratios, often the financial reports provides these. Attach the company financial statements as an appendix to your statement as reference to your work. Present your findings in a Management Business Report wordage should be 1500 +/10%.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Governmental And Nonprofit Entities

Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely

19th Edition

1260118851, 9781260118858

More Books

Students also viewed these Accounting questions

Question

Draw a schematic diagram of I.C. engines and name the parts.

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago

Question

Pay him, do not wait until I sign

Answered: 1 week ago