(a)
Analysis of Financial Statements: Financial statements are the summarized representation of the financial status of a company. The financial statements include the
To explain: The three tools of financial analysis
(b)
Analysis of Financial Statements: Financial statements are the summarized representation of the financial status of a company. The financial statements include the balance sheet, the income statement and the cash flow statement. The analysis of the financial statements is helpful to the financial decision makers and the users. The analysis of the financial statements means to review the statements and to analyze the different ratios so that better economic decisions for the company can be made.
To explain: The three types of analysis on the current assets of Company S.
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- Complete all of the following listed in the picture. Such as: General Journal General Ledaer Trial Balance Income Statement Statement of SE Balance Sheet Analysis Following an accountant format. Including: Compute the total asset turnover ratio for 2020.... Compute the net profit margin ratio for 2020...arrow_forwardUsing both the balance sheet (Table 4–4) and the income statement(Table 4–7) for the MLC, answer the following:a. Calculate the following ratios for 2013: inventory turnover, fixed asset turnover,and total asset turnover.b. In a written explanation, describe what each ratio means.c. In a brief paragraph, describe how well you believe the MLC is managingits assets.arrow_forwardUsing the data for 2018 and the industry norms, compute the financial ratios that were discussed in this chapter (current ratio, return on assets, operating profit margin, total asset turnover, debt ratio, and return on equity).arrow_forward
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