Directions

For the company you chose in the Module Two Journal, open the following documents:

• The balance sheet, income statement, and cash flow statement from the most recent fiscal quarter (from Mergent Online)
• The Ratios Most Recent Fiscal Qtr worksheet in the Project Two Financial Formulas workbook.
  • For example, if the most recent fiscal quarter available is the third quarter in 2022, youll compare those results to the same financial calculations from the third quarter in 2021.

Use the documents to calculate key financial ratios.

Then open the following documents:

• The balance sheet, income statement, and cash flow statement from the same fiscal quarter one year ago
• The Ratios Same Fiscal Qtr 1 Year Ago worksheet

Use the documents to calculate the same financial ratios. Finally, compare those ratios and analyze your results.

Specifically, you must address the following rubric criteria:

1. Financial Calculations. Calculate accurate financial formulas to assess the businesss current financial health. Specifically, calculate the following formulas using the Ratios Most Recent Fiscal Qtr and the Ratios Same Fiscal Qtr 1 Year Ago worksheets in the Project Two Financial Formulas workbook:
   1. Working capital
   2. Current ratio
   3. Debt ratio
   4. Earnings per share
   5. Price/earnings ratio
   6. Total asset turnover ratio
   7. Financial leverage
   8. Net profit margin
   9. Return on assets
   10. Return on equity
2. Fiscal Quarter Comparison. Summarize the differences between the following:
   1. The results from your financial calculations of the most recent fiscal quarter
   2. The results of the same financial calculations of the same fiscal quarter from one year ago
      1. For example, if the most recent fiscal quarter available is the third quarter in 2022, youll compare those results to the same financial calculations from the third quarter in 2021.
3. Comparison Analysis. Explain what your calculations and comparison show about the businesss current financial health. Give examples to support your explanation for the following questions:
   1. Do the results show the business is financially healthy or unhealthy? Which results indicate this?
   2. What might be the causes of the businesss financial success or failure?
   3. Is more information needed to determine the businesss financial health? If so, which pieces of information might still be needed?
4. Short-Term Financing. Explain how potential short-term financing sources could help the business raise funds needed to improve its financial health. Base your response on the businesss current financial information.

What to Submit

Your submission should be a 2- to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. You must also submit the following:

• The Ratios Most Recent Fiscal Qtr worksheet from the Project Two Financial Formulas workbook
• The Ratios Same Fiscal Qtr1 Year Ago worksheet from the Project Two Financial Formulas workbook
• The Excel files for your downloaded balance sheet, income statements, and cash flow statements from Mergent Online

ACCOUNTING \& FINANCIAL RATIOS \begin{tabular}{|l|l|} \hline & NET PROFIT MARGIN (Net Income / Total Revenue) \\ \hline Net Income \\ Total Revenue & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline & RETURN ON ASSETS (Net Income / Total Assets) \\ \hline Net Income & \\ \hline Total Assets & \\ \hline \end{tabular} ACCOUNTING \& FINANCIAL RATIOS Exchange rate used is that of the Year End reported date