Question
The purpose of the second part of the comprehensive project is to compute the financial statement ratios. Based on the company you selected in Part
The purpose of the second part of the comprehensive project is to compute the financial statement ratios. Based on the company you selected in Part I, complete the following:
Company Boeing
A. Compute the following ratios for two years. You may use Excel to compute your ratios.
1. Debt ratio
2. Gross profit margin
3. Free cash flow
4. Times interest earned
5. Accounts receivable turnover
6. Inventory turnover
B. Prepare a DuPont Analysis of ROE for two years, including computations of
1. Return on Sales
2. Asset Turnover
3. Return on Assets
4. Financial Leverage
5. Return on Equity
C. Evaluate the ratio trends. Your evaluation should be consistent with your calculations for the two (2) years.
Write a 3-6 page report evaluating trends in all of the above ratios. Discuss whether your company's profitability, efficiency, liquidity, and solvency are improving or deteriorating. Suggest ways the company can improve the ratios that show problems. The report should be well written with a cover page, introduction, the body of the paper (with appropriate subheadings), conclusion, and reference page. References must be appropriately cited. Use APA throughout. Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.
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