Running Head:ACCOUNTING i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i 1
ACC308FinalProjectMilestone One
SouthernNewHampshire University
March20,2022
ACCOUNTING i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i 2
The Peyton Approved Company has witnessed a financially profitable year for the year
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, grossmargin,return onassetsand returnonequity between
the period of 2016 2017 evaluate the company's overall financial health (Wahlen al., to to et
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 credit sales the of in
given period of has beendivided by the average accounts receivable the same period time in of
time to determine the accounts receivable turnover ratio. Usually, the inventory turnover ratio
takes multiple-step process a to calculate (Wahlen et al., 2017). At the first step, the beginning
inventory be added the previous ending inventory and then, can be divided by 2. can to year’s it
After that, the average be divided by the sold cost identify the ratio. Further,the can good’s to
gross profit dollars of the company have been divided by net sales dollars calculate the its’ to
