Explore BrainMass

Explore BrainMass

    Computing 14 Financial Ratios from Financial Statements

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please help compute the following ratios in Excel. Provide formulas. See attached file for data.

    Current Ratio
    Acid-Test Ratio
    Accounts Receivable Turnover
    Inventory Turnover
    Profit Margin
    Asset Turnover
    Return on Assets
    Return on Common Shares
    Price Earnings Ratio
    Payout Ratio
    Debt to Assets
    Times Interest Earned

    © BrainMass Inc. brainmass.com June 4, 2020, 3:26 am ad1c9bdddf


    Solution Preview

    Good afternoon,

    Please find attached file with your answers. I have computed 2013 as well since it was just a formula copy. I included all the formulae to make it clear.

    Hope this helps.

    Paul Cerisano MBA, MEd

    2014 2013 Formulae
    Current Ratio 1.5 :1 1.4 Current Assets (CA) / Current Liabilites (CL)
    Acid-Test Ratio 0.93 :1 0.89 (CA-Inv) / CL
    Accts Rec Turnover 5.9 x 5.6 Sales / Accounts ...

    Solution Summary

    This solution provides the computations for 14 ratios from the Balance Sheet and Income Statement. Ratios computed involve: current ratio, acid-test ratio, accounts receivable turnover, inventory turnover, and profit margin. It provides all formulae definition and excel paths to solution.