Analyzing Financial Statements Essay

2032 Words Sep 21st, 2013 9 Pages
Analyzing Financial Statements
August 25, 2013

Analyzing Financial Statements
Calculating Ratios
Current Ratio: 2003 Current ratio= Current assets Current liabilities

Current ratio = 82,058.00 93,975.00

Current ratio = 0.87

Long-term solvency ratio: Long-term solvency ratio = Total assets Total liabilities Long-term solvency ratio = 359,863.00 259,979.00 Long-term solvency ratio = 1.38

Contribution ratio: Contribution ratio = Largest revenue source Total revenues Contribution ratio = 632,889.00
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Also “in terms of interpretation, the long-term solvency ratio should be at least 1.0 but as a general rule, the higher the ratio the better the organization is doing” (Martin, 2001). The ratio for
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