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Click the Virtual Organization link on the student Web site to access the Virtual Organizations.
Select one of the Virtual Organizations as the basis for the assignment.
Obtain faculty approval of your selected organization before beginning the assignment.
Access the information contained in your selected organization’s balance sheet and income statement to calculate:
Acid-test, or quick, ratio
Return on assets
Return on common stockholders’ equity
Debt to total assets
Times interest earned
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
Prepare a 350- to 750-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address:
What the liquidity, profitability, and solvency ratios tell you about the financial position of the company
Which users may be interested in each type of ratio
What the collected data tells you about the performance and position of the company