Bus 1420-Ac1420-Week 5 Financial Statement Analysis

AC1420: Week 5 Financial Statement AnalysisIn this exercise, you will discuss the impact of cash payment against the accountspayable on the current ratio of a company. In addition, you will perform a verticalanalysis against the entries listed on the financial statement. Task 1: A company has a current ratio of two. The CFO decides to pay off a portion of itsaccounts payable with cash. Explain whether the current ratio will increase, decrease, orremain unchanged. Support your answer with appropriate rationale. Task 2: Based on the attached financial information, perform a vertical analysis, list thesteps performed, and provide an explanation for your analysis. Year-2010Amount in DollarsSales Year-2009Amount in Dollars 1,00,000 79,900 47,500 39,950 750 500 9,500 9,000 expenses 12,000 12,000 Net income 30,250 18,450 Cost of goods soldOperating expensesSelling expensesAdministrative Submission Requirements: Submit your answers in a Microsoft (MS) Word file. Font: Arial, 12 point, double-spaced Page 1 AC1420: Week 5 Financial Statement AnalysisEvaluation Criteria: CriteriaDid you correctly analyse the Points Assigned Points Earned 20% current ratio based on the giveninformation?Did you support your analysis of 20% current ratio with appropriaterationale?Did you follow the appropriate 20% steps to conduct vertical analysisfor the given financial information?Did you calculate all information as 20% a percent of sales?Did you correctly explain the 20% development of certain costcomponents in the vertical analysisstatement? Page 2mpark posted a question· Mar 02, 2016 at 1: 44pm

Originally posted 2018-07-24 18:53:17. Republished by Blog Post Promoter