Inancial Performance for SAC 2010 & 2011

ACCT614-1301A-02 Applied Managerial Accounting
Phase 1 Discussion Board 3
1200-1500 words, excluding references
Reminder: Initial Discussion Board posts due by Wednesday, responses due by Sunday
Students will be expected to post their first initial discussion board posting by Wednesday of each week. Discussion posts will be graded and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.
Students are expected to post their responses to peers by Sunday. NOTE: All submission posting times are based on midnight Central Time.
Write a memo to your superior analyzing the performance of SAC for 2010 and 2011. This analysis should be based on the information found in the consolidated financial statements.
Download Click here for the 2010 and 2011 financial information.
Your memo should include the following financial ratios and a comparison of the ratios over the two-year period:
a? current ratio
a? debt-to-equity ratio
a? inventory turnover (use ending inventory)
a? accounts receivable turnover (use ending accounts receivable balance)
a? gross margin percentage
Show your calculations for each ratio and comment on SACs performance for each ratio. Discuss other tools/methods that could be utilized to analyze the financial performance of a company.


Format:
You are to calculate the ratios for the company provided in the task area and analyze those ratios.

Format:
I. Part 1 a Give an overview of what is going to be discussed in the memo
II. Part II a Heading a Ratio Analysis Explanation a Explain the proper way to use ratio analysis and the users of ratio analysis
III. Part III a Heading Ratio Calculation a List the ratio, the formula, the amount calculated.
IV. Part IV a Heading Evaluation of the Ratios a Evaluate the ratios, , discuss what the company is doing well and how the company can improve
V. Part V a Heading a Other Financial Analysis a Discuss other ways to analyze Financial statement s other than ratios and with other ratios not listed.
VI. Part VI a Heading a Recommendations for Improvements
VII. References