FNSINC602 - Interpret and Use Financial Statistics and Tools

Added on - 15 Apr 2020

  • FNSINC602

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Running head: FINANCIAL STATISTICSFinancial statisticsName of the studentName of the universityAuthor note
1FINANCIAL STATISTICSTable of ContentsPart 1..........................................................................................................................................2Question no. 1 to Question no. 8............................................................................................2Part 2..........................................................................................................................................2Question 1..............................................................................................................................2Question 2..............................................................................................................................4Reference....................................................................................................................................5
2FINANCIAL STATISTICSPart 1Question no. 1 to Question no. 8QuestionnoRatioFormulaAmountAnswer1Current ratiocurrent assets/current liabilities$2000/$12311.622Quick ratio(Cash & equivalents + short-term investments + accountreceivables)/current liabilities($100+0+$500) / $406.901.473Profit margin ratioNet income / net sales$150,000/$20,00,0000.084Account receivableturnover rationet credit sales/averageaccounts receivable($75,000-$25,000)/(($20,000+$10,000)/2)3.335Debt ratioTotal liabilities/total assets($185,000+$770,000)/($70,000+$500,000)1.686Inventory turnoverCost of goods sold/ averageinventories$ 345,000/ ($45,000+$60,000)6.577Return on assetsAnnual net income/ Averagetotal assets$ 513,000/((25,32,000+29,34,000)/2)0.198Times interest earnedEarnings before interest andtax/ Interest expensesCompany A4.5 million/2 million2.25Company B5 million / 3.5 million1.43Part 2Question 1Internal sources– various internal sources those can be used to assess the current data of anorganization are as follows –
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