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Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowiedge of accounting and just the

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Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowiedge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financlal 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.) Ealance sheet Use the foliowing balance sheet form to enter amounts you identify from the computations on the Lquidity and Solvency Measures part. You wit identify other amounts Use the following balance sheet formi to enter amounts you identify from the computations on the Lquidity and Solvency Measures part. You will identify other amounts for the balance sheet 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. Profitability Measures Match each computation to one of the profitability measures in the table. Comparative Income Statement. Use the following comparative income statement form to enter amounts you identify fram the computations on the Uiquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horicontal onalysis columns. Enter percentages as decimal amounts, founded to one decimal piace. When rounding, look only at the figure to the right of one decimal pisce. If

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