- Based on the financials, what was their cash balance for the most recent year, and how did it compare to the prior year?
- What was their net receivables for the most recent year, and how did it compare to the prior year?
- Does their allowance for doubtful accounts contra-asset account increase (decrease) over the prior year?
- What was their inventory balance for the most recent year, and how did it compare to the prior year?
- What inventory costing method do they use, and why did they choose it ?
Ratio Analysis
- Calculate their receivables turnover ratio for the 2 most recent years and compare it to the industry average.
- Calculate their average collection period for the most recent 2 years and briefly explain the trending.
- Calculate their inventory turnover ratio for the 2 most recent years and compare it to the industry average.
- Calculate their average days in inventory for the most recent 2 years and briefly explain the trending.
- Calculate their fixed asset turnover ratio for the past year and compare it to the industry average.
Accounting · Studypool