Assessment 10: Ratio Analysis

Apply ratio analysis to financial statements.

Introduction

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Ratio analysis is done to compare trends over time.

Ratio analysis is a managerial accounting tool for making and evaluating managerial decisions.

Instructions

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Use the Ratio Analysis Template [XLSX] to complete this assessment. Complete the problems based on the data provided in the template.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

• Competency 4: Analyze financial statements.
  • Calculate a current ratio.
  • Calculate an acid-test ratio.
  • Calculate the number of days sales are uncollected.
  • Calculate an inventory turnover.
  • Calculate the amount sold per day in the inventory of an entity.
  • Calculate a debt-to-equity ratio.
  • Calculate the number of times interest is earned.
  • Calculate a profit margin ratio.
  • Calculate a total asset turnover.
  • Calculate a return on total assets.
  • Calculate a return on common stockholders' equity.
• Competency 5: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.