Question
Using the financial information provided on the attached income statement and balance sheet for Lakeside Company, perform the following analytical procedures: Ratio 2007 2008 Current
Using the financial information provided on the attached income statement and balance sheet for Lakeside Company, perform the following analytical procedures:
Ratio | 2007 | 2008 |
---|---|---|
Current | 1.36 | 1.36 |
# Days inventory on hand | 93.03 | 100.52 |
Receivable collection period (days) | 20.63 | 24.71 |
Debt-to-total-assets | 75% | 75% |
Times interest earned | 3.58 times | 2.79 times |
Profit Margin | 2.79% | 2.27% |
Return on Assets | 8.48% | 6.73% |
Return on Equity | 33.17% | 26.41% |
What is your overall assessment of the significance of the ratios in 2007 and 2008?
What is your overall assessment of the change in ratios from 2007 to 2008?
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