Financial Statement Analysis Project

This project is to be used in conjunction with the Brickey Electronics Financial Statements we converted into excel in class. Completing this assignment in excel is not required, but it is encouraged. Some of the numbers have been changed in Brickeys financial statements. The changes are highlighted in red on the FS Analysis pdf included with the assignment posting. Either use the attached pdf or make the changes to the Brickey Electronics financial statements you have in Microsoft excel. Refer to chapter 15 for ratios that we may not have covered in class as well as additional information about financial statement analysis.

Requirement 1

Perform a horizontal analysis of the financial statements, both income statement and balance sheet, for amount change and percentage change.

Requirement 2

Calculate the following ratios for Brickey Electronics for This Year. Hint: Last years ending balance is the same as this years beginning balance when calculating averages.

Working capital Current Ratio Accounts receivable turnover Average collection period Inventory turnover Average sale period Operating cycle Total asset turnover Times interest earned Debttoequity ratio Equity multiplier Net profit margin percentage Return on equity Earnings per share Priceearnings ratio Assume a $25 per share market price Dividend yield ratio Requirement 3

For each Liquidity and Asset Management measure, decide if a higher or lower result is more desirable and give a brief description of what the measurement represents. Only do this for the Liquidity and Asset Management measures. ( If so along with the work could you post formulas for each cell) by pressing control ~ and posting that picture. Thank you