Pplication: 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 4-22 on pages 128a 129 of the course text provides a balance sheet and an income statement for the company.) THESE ARE ATTACHED FOR YOU

a ¦Prepare your performance report to show calculations for the nine ratios listed on page 129, as well as a comparison of your computed ratios with the listed industry averages.

a ¦Write a short memo to your supervisor explaining your findings and your recommendations for improvement.

a ¦Suggest some ways in which the company can plan to improve below industry average ratio performance.

a ¦Explain why your recommendations would be effective.

a ¦Be sure to list your computations in an appendix to your report. PLEASE MAKE SURE YOU INCLUDE THE COMPUTATIONS IN AN APPENDIX AS YOU DID NOT THE LAST TIME

Submit your Assignment by Day 7.

General Guidance on Application Length:

The memo portion of this assignment will typically be 2 pages in length as a general expectation/estimate. You can show your calculations of financial ratios in a supplemental appendix to your memo. Refer to the rubric for the Week 2 Assignment for grading elements and criteria for the assignment. Your Instructor will use the rubric to assess your work.

REFERENCES:

Brigham, E., & Houston, J. (2013). Fundamentals of financial management (13th ed.). Mason, OH: Cengage Learning.

a ¦Chapter 3, Financial Statements, Cash Flow, and Taxes(pp. 56a 95)
In this chapter, the authors describe concepts covered in a basic accounting course.

a ¦Chapter 4, Analysis of Financial Statements(pp. 96a 136)
In this chapter, the authors describe how financial statements are used by managers to improve the firms value and creditworthiness.