11 ANALYTICAL PROCEDURES—RATIO ANALYSIS FORM The auditor can use this form to document the performance and evaluation of ratio analysis in connection with analytical procedures performed in an audit. The form is only a guide and is not a substitute for professional judgment. The form may be modified by adding or omitting certain ratio analysis. CLIENT NAME: DATE OF FINANCIAL STATEMENTS: LIQUIDITY RATIOS 20__ 20__ 19__ 19__ 1. Current ratio = Current Assets Current
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same is shown by the acid test ratio. The receivables turnover of 4 times in 2008 is down from 7.71 times in 2007. This shows that the company is not collecting on their receivables as often. Berry’s bug blasters does not sell merchandise therefore there is no inventory turnover. The people who are interested in the liquidity ratios would be investors and creditors in the current ratios‚ acid-test ratios‚ receivable turnover‚ and the inventory turnover to determine the stability of the company
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4 RECEIVABLES MANAGEMENT 8 5 INVENTORY MANAGEMENT 10 6 WORKING CAPITAL 11 7 INTRA-COMPARISON 12 8 CONCLUSION 14 INTRODUCTION The purpose and scope of document is to study‚ analyze and understand the business and marketing practices of Ranbaxy Drugs Ltd. In order to achieve this objective‚ two stages were identified: 1. Working capital 2. Intra-comparison. The working capital stage includes: 1. Operating Cycle 2. Cash management 3. Receivable management
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The Warnaco Group Inc. – Accounts Receivable Refer to Warnaco’s Form 10-Q for the quarter ended April 3‚ 1993. A. What is a Form 10-Q? How do the financial statements included in a Form 10-Q differ from the financial statements included in a Form 10-K filing? The Form 10-Q is a quarterly report designed to give a status of how a business is doing after three months of operation. The Form 10-Q and the Form 10-K differ in the report’s interval; the Form 10-K is an annual report. B
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from 2010-2011. When examining this with the inventory turnover ratio from 2010 to 2011 there was a decrease in inventory. This is very concerning from Pinnacle‚ in respects to their industry‚ that there is excess inventory and that the inventory is at the end of its product life cycle and has not seen any sales. The account receivable turnover ratio measures how efficiently a company uses it assets. In this case Pinnacle has a declining at turnover ratio that indicates that Pinnacle should re-evaluate
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CHAPTER 13 Financial Statement Analysis OVERVIEW OF EXERCISES‚ PROBLEMS‚ AND CASES Estimated Time in Learning Outcomes Exercises Minutes Level 1. Explain the various limitations and considerations in financial statement analysis. 2. Use comparative financial statements to analyze a company 12* 45 Mod over time (horizontal analysis). 13* 30 Mod 3. Use common-size financial statements to compare various 12* 45 Mod financial statement items (vertical analysis)
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it has sold. Company leaders use this information to make financial decisions. This concept is condensed by Jon Schreibfeder on Industrialsupplymagazine.com as “The inventory turnover rate measures the number of times you have turned your inventory during the past 12 months” (Schreibfeder‚ 2014). The formula for the turnover ratio is the cost of goods sold divided by the average inventory. The Starbucks company leaders use this information as well. The Starbucks company inventory ratio for 2013 was
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position and how they differ from a cash or accrual basis. It was necessary to calculate such ratios as current and quick liquidity ratios‚ the DuPont ratio (also called the return on equity)‚ gross profit margin‚ asset utilization ratios (receivables and inventory turnover were selected for this category) and financial leverage ratios (represented by debt ratio and debt-to-equity ratio). Liquidity ratios indicate the ability of the company to maintain its short-term financial obligations (Fabozzi &
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The main businesses of the company Webster Limited (WBA) is a company produces fresh land-based food and exports them in Tasmania. WBA has two core operating divisions: one is Field Fresh Tasmania (FFT); and the other is Walnuts Australia (WA). FFT is responsible for producing red and brown onions. It is also the largest exporter of onions in Australia. Providing fresh onions to TESCO is made up 10% of its business. WA is the largest walnuts producer in Australia. WBA produces counter-seasonal food
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Financial Ratio: A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise ’s financial statements. Often used in accounting‚ there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm‚ by current and potential shareholders (owners) of a firm‚ and by a firm ’s creditors. Security analysts use financial ratios to
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