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Using Exhibits 3.1 and 4.1 (ATTACHED), calculate the 11 ratios for both years: 2014 and 2015. For each calculation, compare your answer to the benchmarks provided in the linked template document below and determine whether your figures are favorable, unfavorable, or approximately the same. Note that the terms differ slightly between the lecture material and the Gapenski text, so I am providing the formulas to avoid confusion:
Download the Ratio Analysis Worksheet (ATTACHED).
Each correct calculation will be worth 1 point.
Once you have completed the calculations, write a memo to the organization’s senior management and board of directors explaining the financial strengths and weaknesses based upon your analysis. The liquidity, profitability, and capital structure will be assessed and communicated to the leaders of the organization. Your memo should be no more than 250 words in length and should be written in plain English for a lay audience.
All sources, including course materials, must be cited in text in APA style. Remember that course materials need not be included in your references page, but all other references must be.
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