THIS IS THE QUESTION I NEED ANSWERED, CALCULATIONS PROVIDED BELOW: From your analysis, summarize the major strenths and weaknesses comparing *scroll to the right to see 2010 analysis
Summer's 2017 and 2016 performance. Summarize part 6 A through M.

Current Ratio

2011

2010

Current Assets / Current Liabilities

8.54

(478250/56000)

6.86

(329150/48000)

Strengths and Weaknesses

Current Ratio is calculated by dividing the company's total current assets by the company's total current liabilities. This ratio is a widely used measure of a firm's ability to meet it's current obligations & to have funds available for use in daily operations.

A generally accepted rule of thumb is that the current ratio should be 2:1, indicating that a company should maintain twice the dollar amount of current assets as was needed to satisfy it's current liabilities.

2011's current ratio was better than 2010

PART 6 B.

2011

2010

Quick Ratio

Cash & cash equivalents + short term investments + Accts Recievable) /

3.15

(176200+238850)/56000

5.94

(253100+31850)/48000

Current Liabilities

Strengths and Weaknesses

Quick ratio reveals the relationship between the company's Liquid Assets and it's Current Liabilities. It gives a more accurate picture of a company's ability to meet current obligations since the ratio ignores potentially illiquid inventory and prepaid expenses.

The higher the ratio, the the more financially secure a company is in the short term. 2010 has the better ratio

PART 6 C.

2011

2010

Rate of Return on Total Assets

0.026

(27100/1049800)

0.073

(70100/963700)

Net Income / Average Total Assets

Strengths and Weaknesses

The rate of return on total assets reveals the rate of profit earned per dollar of assets under a firm's control.

Both 2011 and 2010 have poor ratios, but 2010 is slightly better.

PART 6 D.

Rate of Return on Common Stockholder's Equity

2011

2010

(Net Income - Preferred Stock Dividends) / Average common stockholders equity

Strengths and Weaknesses

The return on common stockholder's equity measures the profitability of the ownership interest held by a company's common stockholders. The ratio shows the percentage of income available to common stockholders- that is, net income less any preferred stock dividends - for each dollar of common stockholder equity invested in a business.

PART 6 E.

2011

2010

Earnings Per Share

(net income-preferred dividends) / outstanding common shares

(27100-0) /

Strengths and Weaknesses

PART 6 F.

2011

2010

Accounts Receivable Turnover

Net Sales / Average Accts Recievable (Net)

1.92

(260000/135350)

10.5

(521000/49600)

Strengths and Weaknesses

The Accounts Recievable Turnover measures the ability to collect cash from customers. A higher turnover indicates that the company is converting their recievables at a faster rate.

2010 is much higher than 2011.

2011

2010

Average Collection Period

190.01

(365/1.921)

34.76

(365/10.50)

365 / Accts Recievable Turnover (Net)

Strengths and Weaknesses

The average collection period indicates how many days remain in accounts receivable. The lower the # of days, the quicker you are converting the recievables into cash. 2010 had the better average collection period.