Part 4 of Study

Use Microsoft Excel to prepare a standard ratio analysis table for all your clients. Your table includes all 17 ratios listed in the Libby textbook chapter 13 Exhibit 13.3. your table includes all ration for the current and prior year to four decimal points. In summary, your standard ratio analysis table includes:

Column 1: # List the ratio number 1-19

Column 2: Type indicate the type of ratio- Liquidity, Activity Liquidity, etc.

Column 3: Ratio indicate the name of the ration.

Column 5 2011 Indicate the 2011 ratio

Column 4 2012 indicate the 2012 ration

column 6 change indicate the year-to-change

Column 7: Assessment Indicate Good, Bad, or N/A

You include an assessment column with your assessment of each year-to-year change:

1. Good year to year change makes the company seems to be a better investment
2. Bad year to year change makes the company the company seem to be worse investment
3. N/A not applicable, no year-to-year change
4. In making this assessment, you consider what the year-to-year change indicates about the companys financial improvement or deterioration and its value to a potential investor.
5. The format and print two versions of this table to your clients: one version shows the ratios to four decimal point and a second version shows the formulas that was used to calculate the ratios.

Additional Information

For the price-earnings ratio, you need market information not contained in the 10K.

Here it is:

1. Market price per share at 12/31/2012: $1.80
2. Market price per share at 12/31/2011: $0.31