XACC 291 Week 9 Final Project - Ratio Analysis Memo

XACC 291 Week 9 Final Project - Ratio Analysis Memo


Resources: Virtual Organizations

Click the Virtual Organization link on the student website to access the Virtual Organizations.

Select Riordan Mfg. as your Virtual Organization and the basis for this assignment, you will use years 2009-2010 only, you are required to use the template.

Access the information contained in your selected organization’s balance sheet and income statement to calculate the following:

• Liquidity ratios

o Current ratio
o Acid-test, or quick, ratio
o Receivables turnover
o Inventory turnover

• Profitability ratios

o Asset turnover
o Profit margin
o Return on assets
o Return on common stockholders’ equity

• Solvency ratios

o Debt to total assets
o Times interest earned

Show your calculations for each ratio.

Create a horizontal and vertical analysis for the balance sheet and the income statement.
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