Application – Using Ratio Analysis To Inform Organizational Decisions

  Application – Using Ratio Analysis To Inform Organizational Decisions 

The Assignment: Barry Computer Company

Prepare a performance report on Barry Computer Company. (Problem 4-23 on pages 131-132 of the course text provides a balance sheet and an income statement for the company.)

• Prepare your performance report to show calculations      for the eleven ratios listed on page 131-132, as well as a comparison of      your computed ratios with the listed industry averages.
• Write a short memo to your supervisor explaining your      findings and your recommendations for improvement.
• Suggest some ways in which the company can plan to      improve below industry average ratio performance.
• Explain why your recommendations would be effective.
• Be sure to list your computations in an appendix to      your report.