Resources: Virtual Organizations?

Resources: Virtual Organizations

Click the Virtual Organization link on the student website to access the Virtual Organizations.

Select one of the Virtual Organizations as the basis for this assignment.

Obtain faculty approval of your selected organization before beginning the assignment.

Access the information contained in your selected organization’s balance sheet and income statement to calculate the following (for each period presented):

• Liquidity ratios

o Current ratio

o Acid-test, or quick, ratio

o Receivables turnover

o Inventory turnover

• Profitability ratios

o Asset turnover

o Profit margin

o Return on assets

o Return on common stockholders’ equity

• Solvency ratios

o Debt to total assets

o Times interest earned

Show your calculations for each ratio (for each period presented)

Create a horizontal and vertical analysis for the balance sheet and the income statement.

Write a 1000- to 1500-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:

• What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?

• Which users may be interested in each type of ratio?

• What does the collected data reveal about the performance and position of the company?

• Make specific references to the calculations from the Excel analysis, including trends between periods.

Format your paragraph consistent with APA guidelines.

• At least one cited reference (properly formatted, including “quoted” in the body of the paper and properly listed in the Works Cited section at the end of paper) must be the text.

• At least one quoted cited reference (properly formatted, including “quoted” in the body of the paper and properly listed in the Works Cited section at the end of paper) must be other than the text.

• Web citations have specific formats. Refer to the Axia provided materials for proper formatting.

• Double spacing

• Title Page

• Pagination

• Running Header

• Headings improve readability—and make it easy for me to identify where and if you have met all the requirements per the grading rubric

1 Answer

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  • 6 years ago
    Favorite Answer

    Cool assignment, looks like an interesting course :)

    Source(s): Working in business, could have used some of this kind of analytical training.
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