Running Head:ACCOUNTING f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 1
ACC308FinalProjectMilestone One
Southern New Hampshire University
March20,2022
ACCOUNTING f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 2
ThePeyton Approved Company has witnessed financially profitable year for theyear a
2017. However, some decrease has been seen the ratio analysis report per the managerial in as
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 theperiod 2016 2017 evaluate the company's overall financial health (Wahlen of to to
et al.,2017).
At first, the current assets have divided by current liabilities determine the been to
working capital the current ratio. Moreover, the quick assets have been divided by current or
liabilities determine the quick to ratio. For example, the quick assets include accounts
receivables, marketable securities, and cash. Additionally, the net value of credit sales the in
given period of has beendivided by the average accounts receivable the sameperiod of time in
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 beginning to et At
inventory beadded the previous ending inventory andthen, be dividedby 2. can to year’s it can
After that, the average can be divided by the sold cost identify the ratio. Further, the good’s to
gross profit dollars of the company have been divided by its’ net sales dollars to calculate the
