Prepare schedules showing the amount and percentage changes from 20X7 to 20X8 for the comparative income statements and the balance sheets Prepare common-size income statements and balance sheets for 20X7 and 20X8 Comment on the results in requirements 1 and 2 by identifying favourable and unfavourable changes in the components and composition of the statements
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Balances for selective accounts of Sanborn at the end of 20X6 were:
accounts receivable (net) 206,800; inventory 547,200; total assets 1,465,600; accounts payable 386,600; and
Can we perform a comprehensive ratio analysis calculating the ratios mentioned below and round all answers to one decimal place:
1. A liquidity analysis by calculating for each year the:
2. A profitability analysis by calculating for each year the net profit margin; asset turnover; return on total assets (using net income after taxes and ignoring interest expenses) and return on equity.
Whether each ratio improved or deteriorated from 20X7 to 20X8 (use F for favorable and U for unfavorable and consider change of .1 or less to be neutral)?
by Bartleby ExpertWhy does a decrease in receivable turnover create the need for cash from
operating activities? (4%)
b. Why would ratios that include one balance sheet account and one income
statement account such as receivable turnover or return on assets, be
questionable if they came from quarterly or other interim financial reports?
by Bartleby Expert
