Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need to do 10 ratios, must include: Return on assets ratio Debt ratio Profit margin ratio (use total revenues as the denominator) Current rario

I need to do 10 ratios, must include:
Return on assets ratio
Debt ratio
Profit margin ratio (use total revenues as the denominator)
Current rario
image text in transcribed
image text in transcribed
image text in transcribed
FINANCIAL ANALYSIS ASSIGNMENT Each student will perform a financial analysis of the assigned company. The analysis will consist of ratios using the financial statements from week 1. They include the balance sheet, income statement, and statement of retained earnings. All calculations are to be done using Excel and the quantified information presented in spreadsheet format. 1. Input the financial statements for Tybalt Construction into a spreadsheet (ALREADY DONE) 2. Using the statements, you have prepared, compute 10 ratios. Please make sure to include the ratios: (a) return on assets, (b) debt ratio, (e) profit margin ratio (use total revenues as the denominator), and (d) current ratio. Round ratios to three decimals for parts a and c, and to two decimals for parts b and d. Pick (2) ratios from each of the categories below. Types of Ratios Most analysts think of financial ratios as consisting of five basic types: Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate bf retum. Liquidity ratios measure the availability of cash to pay debt. Activity ratios, also called efficiency ratios, measure the effectiveness of a firm's use of resources, or assets. Debt, or leverage, ratios measure the firm's ability to repay long-term debt. Market ratios are concerned with shareholder audiences. They measure the cost of issuing stock and the relationship between return and the value of an investment in company's shares. . H22 fx D E F 1 2 9 115,100 B Tybalt CONSTRUCTION Income Statement 3 For Year Ended December 31, 2016 4 5 Revenues 6 Professional fees earned $ 97,000 7 Dividends earned 2,000 8 Interest earned 2,100 Rent earned 14,000 10 Total Revenues $ 11 12 Operating Expenses 13 Depreciation Expense - Building $ 11,000 14 Depreciation Expense - Equipment 6,000 15 Insurance Expense 10,000 Interest Expense 5,100 17 Postage Expense 4,200 Property Taxes Expense 5,000 19 Rent Expense 13,400 20 Repairs Expense 8.900 21 Supplies Expense 7,400 22 Telephone Expense 3,200 23 Utilities Expense 4,600 24 Wages Expense 32,000 25 Total Operating Expenses 26 NET PROFIT 16 18 110,800 4,300 27 28 29 121,400 TYBALT CONSTRUCTION Statement of Owner's Equity 30 For Year Ended December 31, 2016 31 0. Tybalt, Capital, December 31, 2015 $ 32 Add: Net Profit $ 4,300 34 Investments by owner 5,000 35 Less: 36 Withdrawels by owner 13,000 37 O. Tybalt, Capital, December 31, 2016 $ 38 33 9,300 130.700 117,700 H22 & fx B D E 5,000 23,000 7,000 8,100 43,100 100,000 20,000 55,000 54 39 Tybalt CONSTRUCTION 40 Balance Sheet 41 December 31, 2016 42 Assets 43 Current Assets 44 Cash 45 Accounts Receivable 48 Prepaid Insurance 47 Supplies 48 Total Current Assets $ 49 Fbred Long-Term Assets 50 Building $ 150,000 51 Less accumulated depreciation - Building (50,000 $ 52 Equipment 40,000 53 Less accumulated depreciation - Equipment (20,000) Land 55 56 Total Long-term Assets $ 57 Total Assets 58 59 Liabilities and Owner's Equity 60 Current Liabilities Accounts Payable Current portion of long term note payable 63 Interest Payable 64 Property taxes payable Rent Payable 66 Unearned Professional fees 87 Wages Payable 68 Total Current Labilities $ 89 Long-term Liabilities Long-term roles payable Total Long-term Liabilities 72 Owner's Equity 73 O. Tybalt, Capital, December 31, 2016 74 Total Owner's Equity 75 Total Liabilities and Owner's Equity 76 175,000 218,100 16,500 7,000 2.500 900 3,500 7,500 2.500 40,400 65 70 71 60,000 60,000 117.700 117,700 218,100 77 178

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

Students also viewed these Finance questions