Compare the financial statements of the previous and the current year to create a comparative income statement and balance sheet into a new Microsoft Excel document. Use horizontal analysis to calculate the differences in dollars and percentages and explain the possible reasons for the differences. Calculate the following ratios for the current financial year based on the information in the attached doucment:
- Current ratio
- Solvency ratio
- Return on owners' equity ratio
- Profit margin ratio
- Food or beverage sales ratio
- Cost of sales ratio for food and beverage
- Labor cost ratio
Compare your ratio results to the previous year's values and explain possible reasons for the differences. Be sure to include a discussion of controllable and uncontrollable expenses and how these can impact the past, present, and future financial health of the establishment.
The attachment labeled Corrected is the pervious year and the second one is the new year one that is to be used as a comparison.© BrainMass Inc. brainmass.com August 19, 2018, 11:35 am ad1c9bdddf
The library contains calculations of ratios and comparison of balance sheet and income statement.