Running Head: ACCOUNTING a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 1
ACC 308 Final Project Milestone One
Southern New Hampshire University
March 20,2022
ACCOUNTING a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a
a a a a a a a a a a a a a 2
The Peyton Approved Company has witnessed a financially profitable year for the year
2017. However, some decrease has been seen in the ratio analysis report as per the managerial
point of view. Here, I will compare the accounts receivable turnover, current ratio, inventory
turnover, quick ratio, return on sales, gross margin, return on assets and return on equity
between the period of 2016 to 2017 to evaluate the company's overall financial health (Wahlen
et al., 2017).
At first, the current assets have be divided by current liabilities determine the en to
working capital or the current ratio. Moreover, the quick assets have been divided by current
liabilities determine the quick ratio. For example, the quick assets include accounts to
receivables, marketable securities, and cash. Additionally, the net value of credit sales the in
given period of time has been divided by the average accounts receivable in the same period of
time to determine the accounts receivable turnover ratio. Usually, the inventory turnover ratio
takes a multiple-step process calculate (Wahlen al., 2017). the first step, the to et At beginning
inventory added the previous ending inventory and then, be divided by can be to year’s it can
2. After that, the average be divided by the sold cost identify the ratio. Further, can good’s to
the gross profit dollars of the company have been divided by net sales dollars calculate its’ to
