PURPOSE To assess the student's ability to produce the financial statements of the fictional company from Assessment 2a and using the financial data from the financial statements, calculate and analyse the financial ratios and report the results in a written business report. + REQUIRED 1) Produce the Balance Sheet and Income statement of the fictional company from Assessment 2 a. 2) Using the Balance Sheet and Income Statement of the company obtained from Assessment 2 a, calculate and analyse the ratios for profitability, liquidity and solvency. Your financial analysis in your written report should contain the calculations * and analysis of the following ratios: 4 Current ratio = Current Assets / Current Liabilities Quick ratio = (Current Assets Inventory) / Current Liabilities Inventory turnover = Cost of Good Sold / Inventory Gross profit Margin %= Gross Profit / Net Sales Net profit Margin % = Net Profit / Net Sales Return on Asset % = Net Profit / Total Assets Debt to Asset Ratio = Total Liabilities / Total Assets * Tabulate and show the ratio formula and detailed calculations and workings in an Appendix. 3) Discuss the findings/ results of your financial analysis of each ratio, and include your recommendations for managerial actions in your report. A marking rubric (assessment criteria) is included in this assessment for your information. The marking rubric details what is required in the report under each section. + PURPOSE To assess the student's ability to produce the financial statements of the fictional company from Assessment 2a and using the financial data from the financial statements, calculate and analyse the financial ratios and report the results in a written business report. + REQUIRED 1) Produce the Balance Sheet and Income statement of the fictional company from Assessment 2 a. 2) Using the Balance Sheet and Income Statement of the company obtained from Assessment 2 a, calculate and analyse the ratios for profitability, liquidity and solvency. Your financial analysis in your written report should contain the calculations * and analysis of the following ratios: 4 Current ratio = Current Assets / Current Liabilities Quick ratio = (Current Assets Inventory) / Current Liabilities Inventory turnover = Cost of Good Sold / Inventory Gross profit Margin %= Gross Profit / Net Sales Net profit Margin % = Net Profit / Net Sales Return on Asset % = Net Profit / Total Assets Debt to Asset Ratio = Total Liabilities / Total Assets * Tabulate and show the ratio formula and detailed calculations and workings in an Appendix. 3) Discuss the findings/ results of your financial analysis of each ratio, and include your recommendations for managerial actions in your report. A marking rubric (assessment criteria) is included in this assessment for your information. The marking rubric details what is required in the report under each section. +
