Write a one page, double spaced memo to a non-financial audience explaining how increasing scrutiny and demand for accountability by the public has influenced reporting for not-for-profit and governmental entities.© BrainMass Inc. brainmass.com October 17, 2018, 12:02 pm ad1c9bdddf
Increasing scrutiny and demand for accountability by the public influenced reporting for not-for-profit and governmental entities, due to the fact that this increasing scrutiny led the general public to call for investigations into the financial activities of not-for-profit organizations, as well as governmental entities by the Internal Revenue Service etc. In addition, the general public influenced reporting for not-for-profit organizations by constantly pressuring the leadership of these organizations to allow external auditors to review their financial records, in order to ensure ...
This response demonstrates the public demand for business and governmental financial accountability.
Liquidity Ratios and Solvency Ratios in accounting
I have to choose two publicly traded companies and compute liquidity ratios and solvency ratios. I have chosen Dell and HP as my companies and the financial information for the FY2008 has been attached for each company. The list below is what I have to derive from the information.
Compute the following liquidity ratios for each of the companies, and comment on the relative liquidity of the two competitors.
i) Current ratio.
ii) Receivables turnover.
iii) Average collection period.
Compute the following solvency ratios for each of the companies, and comment on the relative solvency of the two competitors.
i) Debt to total assets ratio.
ii) Times interest earned.
iii) Cash debt coverage ratio.
iv) Free cash flow.
iv) Inventory turnover.
v) Days in inventory.
vi) Current cash debt coverage.
Compute the following profitability ratios for each of the companies, and comment on the relative profitability of the two competitors.
i) Profit margin.
ii) Asset turnover.
iii) Return on assets.
iv) Return on common stockholders' equity.
e) Which of the two companies would you prefer to invest in? Why, and under what circumstances?
I understand that to get the current ratio you have to divide current assets by liabilities. I have found this information. I also understand many of the ways to get the information, but I am having difficulty finding the information in the financial statements. If you could please help me get the information and give me where you found it in the documents.View Full Posting Details