Question
I need an Interactive Financial Simulation & Case Study Financial Ratio Analysis. From the link DIRECTIONS: CLICK HERE: http://www.mhhe.com/business/finance/interactivefinsims/ratios/content.html (Links to an external site.) Read
I need an Interactive Financial Simulation & Case Study Financial Ratio Analysis. From the link
DIRECTIONS:
CLICK HERE: http://www.mhhe.com/business/finance/interactivefinsims/ratios/content.html (Links to an external site.)
Read the INSTRUCTIONS.
Review the BASE STATEMENTS and scroll over the red arrows to reveal descriptions of the ratios in more detail.
Click on each of the six business decisions for a detailed description.
Review the REVISED STATEMENTS to understand the decisions impact on the statements.
This case explores six hypothetical business decisions that managers at Dell Computer might make and each decisions impact on the financial statements and resulting financial ratios. Only choose one of the business decisions Analyze the decision and its impact on the related financial statements and overall organization. Complete the revised ratios after the business decision to determine which ratios are affected the most.
Be sure to select the important ratios affected by the business decision, calculate the ratios and the change in the numbers and the ratio between the base statements and the revised statements.
Incorporate those ratios (base and revised) into your case analysis to demonstrate your point(s). Support the changes in the ratio by explaining WHY they increased/decreased. What specifically on the balance sheet or income statement caused the change?
Include percent increases/decreases to benchmark your measurements as to what changes are significant or insignificant. (Review this formula from previous courses if necessary: "NO/O" formula = (New value - Original Value) Original Value = Percent Increase/Decrease.
( how
Example:
"Sales for Company X increased from $1.2 million to $1.6 million which represents a 33% growth rate. The rise in sales is largely attributed to expanding sales in Asia. Concurrently, accounts receivable and inventory kept pace with the rise in sales increasing from $600,000 to $800,000 (33% increase) and from $900,000 to $1.1 million (22% increase), respectively. This increase in current assets was necessary to support the sales growth. As a result, the current ratio remained strong at 1.3X versus the 1.2X reported last year while the quick ratio stayed flat at 0.86X."
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