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Sterling Company's financial ratios for the most recent year

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P2-24 Integrative?Complete ratio analysis Given the following financial statements
(below and on page 96), historical ratios, and industry averages, calculate Sterling
Company's financial ratios for the most recent year. (Assume a 365-day year.)
Analyze its overall financial situation from both a cross-sectional and a time-series
viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt,
profitability, and market.

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Solution Summary

Your tutorial is attached in Excel. Click in cells to see computations. You have each ratio grouped by evaluation category (profit, liquidity, activity, debt, market) and the numerator and denominator for each. The 2009 ratio is compared to the industry (cross sectional) and to the prior two years (time series) with a paragraph for each ratio category.

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Your tutorial is attached in Excel. Click in cells to see computations. You have each ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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