Homework: Annual Report Project
Using your company's Form 10-K from the Annual Report Project homework, analyze the information and include the following items as supplemental schedules to the analysis. These schedules should be prepared as individual worksheets within an Excel spreadsheet.
Provide a calculation of at least three significant liquidity ratios:
1) Current ratio
2) Acid test ratio
3) Cash ratio
4) Current cash debt coverage ratio
5) Working capital
Provide a calculation of at least three significant long-term debt-paying (coverage) ratios:
1) Times interest earned
2) Debt ratio
3) Debt/Equity ratio
4) Fixed charge coverage
In a summary of 500 to 750 words, analyze the financial strengths and weaknesses of your company based on the results of the liquidity and long-term debt ratios analysis.
Your analysis should be more than just a restatement of the results of the ratios. The analysis should provide some possible reasons for why the ratios increased or decreased over the last 3 years. Consider the relationships between the types of accounts and correlations that should (or should not) occur with the ratios.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.