ACC 556 WEEK 10 DISCUSSION

ACC 556 WEEK 10 DISCUSSION

R"Ratio Analysis" Please respond to the following:

Management of the Monteroy Inc is preparing for an important meeting with its creditors. You are hired to prepare a document supporting the view that Monteroy is a going concern with good solvency. Use at least 2 of the key ratio presented for 2016 and 2017 to make your case. Include comparison of the year to year information. Make the strongest case possible. Your choice of ratio and your interpretation of the meaning for Monteroy are the primary issues you must address this week. Be sure to note that the change is from 2016 to 2017 right to left. 

EXTRA CREDIT: +5 EC Prepare your discussion as above but for 2 additional ratios

                                        2017                       2016   

Current Ratio                   3.1                         2.1 

Acid-test Ratio                   .8 times                1.4 times

Asset turnover                 2.8 times                2.2 times

Net income                      Up 32%                  Down 8%

Earnings per share          $3.30                      2.50

NOTE: MORE THAN ONE VERSION POSTED AS A BONUS CHOOSE ANY