xacc 291 final week nine topic virtual organization baderman island resort

Final Project

Ratio Analysis Memo

Resources: Virtual Organizations

Click the Virtual Organization link on the student website to access the Virtual Organizations.

Select one of the Virtual Organizations as the basis for this assignment.

Obtain faculty approval of your selected organization before beginning the assignment.

Access the information contained in your selected organization’s balance sheet and income statement to calculate the following:

·Liquidity ratios

oCurrent ratio

oAcid-test, or quick, ratio

oReceivables turnover

oInventory turnover

·Profitability ratios

oAsset turnover

oProfit margin

oReturn on assets

oReturn on common stockholders’ equity

·Solvency ratios

oDebt to total assets

oTimes interest earned

Show your calculations for each ratio.

Create a horizontal and vertical analysis for the balance sheet and the income statement.

Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:

·What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?

·Which users may be interested in each type of ratio?

·What does the collected data reveal about the performance and position of the company?

Format your memo consistent with APA guidelines.