PRINCIPLES OF FINANCIAL ANALYSIS

SPREADSHEET ASSIGNMENT: Financial Ratios

1. Retrieve the file ROAROEP.XLS.

2. Refer to the five financial variables reported for a company in

column A and their respective numerical values in column D.

3. Enter the appropriate equations to provide solutions for the

following cells: D18, D20, D22, D24, D28, D30, D32, and D34.

Hint: Refer to your class notes for the solution to a similar

problem.

3. Refer to the three financial ratios identified in column F

and the accompanying industry average values in column I.

4. Enter the appropriate equations to provide solutions for the

following cells: I28, I30, I32, and I34. Hint: Refer to your

class notes.

5. Use the value presented in cell K24 to solve for the financial

leverage ratios in cells K28 and K30. The value in cell K24 is

a new value that is unrelated to other values in the worksheet.

Disregard the calculated values in column I in calculating the

values in cells K28 and K30.

6. A summary question is posed in cell A40. Identify the name of

this ratio in cell A44. Hint: Refer to your class notes.

7. Print the worksheet.