Ratio Analysis Problems\tRatio Analysis\t(Individual Assignment)\t\u00a0You may use excel or word.doc format for this assignment.\tPlease post your homework as a word.doc or excel file in the class discussion section below by the due date.\t1.\u00a0\u00a0Analysis of cost of goods sold problem.\t\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a01992 \ufffd\u00a0\u00a01993\u00a0\u00a0\u00a0\u00a01994\t \ufffd\u00a0Gross Profit Margin \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a060% \ufffd55% \ufffd51%\u00a0\tWhat is happening to cost of goods sold?\u00a0\u00a0As was done in the week 2 online lecture on ratio analysis, please assume sales of 1 dollar each year as you do your analysis.\u00a0\u00a0This problem follows the process shown in the Week 2 Ratio Analysis online lecture section titled: “Another Income Statement Analytical Approach: Percent of Sales”\t\u00a0\u00a0(5 points)\t2.\u00a0\u00a0Overhead (or Sales, General and Administrative Expense) problem.\u00a0\t\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a01992 \ufffd\u00a0\u00a01993\u00a0\u00a0\u00a0\u00a01994\t\u00a0\u00a0\u00a0Gross Profit Margin \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 40% \ufffd\u00a0\u00a0\u00a039%\u00a0\u00a0\u00a0\u00a041%\t\u00a0\u00a0\u00a0Operating Margin (NOI\/Sales) \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 15% \ufffd\u00a0\u00a0\u00a010% \ufffd\u00a05%\u00a0\tWhat is happening to S,G and A (or overhead expenses)?\u00a0\u00a0Please set up an illustration assuming sales of 1.00 dollar each year just as you did in problem number one.\u00a0\t(5 points)\t3. Balance Sheet Problem\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a01992 \ufffd\u00a0\u00a01993\u00a0\u00a0\u00a0\u00a01994\t\u00a0\u00a0\u00a0Annual Sales Growth (over prior yr) \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 + 1% \ufffd\u00a0\u00a0\u00a0\u00a00% \ufffd+1%\t\u00a0\u00a0\u00a0Current Ratio \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a03.5X \ufffd\u00a0\u00a0\u00a02X \ufffd\u00a01.2X\t\u00a0\u00a0\u00a0Average Collection Period \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a025 days\u00a0\u00a0\u00a030 days\u00a0\u00a055 days\u00a0\tWhat is happening to liquidity?\u00a0 Why?\u00a0What are some follow-up questions your would ask?\u00a0 (5 points)\u00a0\t4.\u00a0\u00a0Using the data provided below, which is the better managed company?\u00a0\u00a0Why?\u00a0\u00a0Please support your answers by calculating appropriate ratios. (5 points)\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffdCompany A \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Company B\u00a0\tSales \ufffd \ufffd\u00a0\u00a0\u00a0\u00a010 million dollars \ufffd \ufffd \ufffd \ufffd20 million dollars\tNet Income \u00a0 \u00a0 \u00a0 1 million dollars \ufffd \ufffd \ufffd \ufffd\u00a0\u00a02 million dollars\tTotal Assets \ufffd10 million dollars \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 15 million dollars\u00a0\tClick the Assignment Files tab to submit your assignment.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ratio Analysis Problems Ratio Analysis (Individual Assignment) \u00a0You may use excel or word.doc format for this assignment. Please post your homework as a word.doc or excel file in the class discussion section below by the due date. 1.\u00a0\u00a0Analysis of cost Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-217003","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=217003"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217003\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=217003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=217003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=217003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}