Homework: Financial Statements Using Financial Ratios
Purpose of Homework
This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential homework requires students to use ratios to evaluate and analyze a company's liquidity, solvency, and profitability.
Case:
Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios.
The summary information provided by TRI Document presented below.
Use TRI's summary information in an attached document for financial data to complete assignmfinancialent and finacial statements.
Required:
I. Calculate the select financial ratios for the fiscal year Year 2. (use MS word or excel but excel is more recommended)
II. Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Financial-Statment.rar