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Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the
Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Balance Sheet Use the following balance sheet form to enter amounts you identify from the computations on the Lquidity and Solvency Measures part. You will identify other amounts for the balanca sheat on the Profitability Measures part. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Compute any missing amounts. Use the following balance sheet form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part. Ypu will identify other amounts for the balance sheet on the Profitability Measures part. If you have a choice of two amounts. ascume the first amount in the ratio is for the end of the year. Compute any missina amaunte Profitability Measures Match each computation to one of the profitability measures in the table, Profitability Measures Computations Asset turnover Return on total assets Return on stockholders' equity Return on common stockholders' equity Earnings per share on common stock Price-earnings ratio Dividends per share Dividend yleld Comparative Income Statement right of one decimal place. If
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