Acc 291 Essay

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Ratio Analysis Memo ACC 291 Ratio Analysis Memo For this assignment we need to choose a virtual organization and prepare a memo to the CEO to discuss the findings from our ratio calculations and also submit a horizontal and vertical analysis for the balance sheet and the income statement. The virtual organization our team chose was Berry’s Bug Blasters. Listed first in this paper will be the ratio calculations; liquidity, profitability, and solvency. Solvency Ratios | Debt to Total Assets Ratio | 2007 | 2008 | $ 366,786.29 | 24.5% | $ 306,805.71 | 15.9% | $ 1,498,882.00 | | $ 1,932,041.17 | | | | | | Times Interst Earned | 2007 | 2008 | Unable to calculate because no interst…show more content…
Berry's Bug Blasters | | | Condensed Income Statement | | | Horizontal Analysis | | | | 2008 | 2007 | | | Revenues & Gains | $3,249,580.53 | $3,893,027.78 | ($643,447.25) | -16.5% | Expenses & Losses | $2,756,440.78 | $3,124,026.98 | ($367,586.20) | -11.8% | Net Income | $493,139.75 | $769,000.80 | ($275,861.05) | -35.9% | | | | | | | | | | | Berry's Bug Blasters | | | Condensed Income Statement | | | Vertical Analysis | | | | 2008 | | 2007 | | Revenues & Gains | $3,249,580.53 | 100.0% | $3,893,027.78 | 100.0% | Expenses & Losses | $2,756,440.78 | 84.8% | $3,124,026.98 | 80.2% | Net Income | $493,139.75 | 15.2% | $769,000.80 | 19.8% | MEMORANDUM To: CEO, Berry’s Bug Blasters From: Team B Date: February 04, 2013 Regards: Ratio Analysis for Berry’s Bug Blasters A ratio analysis has been performed on Berry’s Bug Blasters using data from the financial statements from the last two years. Ratios can provide clues to underlying conditions that may not be apparent from

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