Purpose of AssignmentThis activity helps students
recognize the significant role accounting plays in providing financial
information to management for decision making through the evaluation of
financial statements. This experiential assignment requires students to
use ratios to evaluate and analyze a company’s liquidity, solvency, and
profitability.
Two-Rivers Inc. (TRI) manufactures a variety of
consumer products. The company’s founders have run the company for
thirty years and are now interested in retiring. Consequently, they are
seeking a purchaser, and a group of investors is looking into the
acquisition of TRI. To evaluate its financial stability, TRI was
requested to provide its latest financial statements and selected
financial ratios. Summary information provided by TRI Document presented
below.
TRI Documents
Required:
a. Calculate the select financial ratios for the fiscal year Year 2. (use MS word or excel but excel is more recommended)
b. Interpret what each of these financial ratios means in terms of TRI’s financial stability and operating efficiency.
Submit your assignment.
Resources:
Leave a Reply