Competency in Excel

Overview

From Microsoft Excel for Accounting,

Once you have prepared the financial statements, use Excel to perform a ratio analysis as instructed below and write a memo analyzing the company’s financial position.    

You must use Excel formulas to compute the ratios and totals on the financial statements where applicable. Points will be deducted if you do not use formulas for your calculations.  

Instructions

Part I

Using the data from your balance sheet, statement of owner’s equity, and income statement, perform the following ratio analyses:

· Current ratio.

· Quick ratio. 

· Debt ratio.

· Equity ratio.

· Debt-to-equity ratio.

· Profit margin ratio.

·

Submit one Excel workbook for Part I with each financial statement on a separate tab.  Put the financial ratios on a separate tab.  Label each tab accordingly. 

Part II 

Write a 2–3 page memo analyzing the company’s financial position based on the financial statement results and ratio calculations performed in Part I.  

In your summary, discuss the following:

· Whether the firm is financially strong. 

· What they have more of (assets or liabilities). 

· Whether or not they are generating income.

· The results of their financial ratios. 

· Whether or not you would invest in this company.   

The memo will be submitted electronically as a Microsoft Word document.