Details: Put together a slide presentation for familiarizing staff with the current condition of the company. Those attending your presentation will include some who are less familiar with the use of financial ratios. Use the following financial statements for ALLGR Manufacturing to derive important financial ratios for year 1 and year 2:
Next, compare each ratio from one year to the next and provide a brief explanation of the following:
a) What does each ratio signify?
b) Identify at least two types of users that would use ratio analysis as a financial analysis tool and the type of decisions the users would make based on the ratio analysis.
c) Provide a brief commentary (3-4 paragraphs) about the financial health of ALLGR based on the ratios derived.
This solution explains how to balance a comparative income statement.