Objectives: Determine a firm’s financial condition by calculating and benchmarking specified ratios against other companies in the industry. Use the Internet to gather information on a specified business topic. Produce business letters or memorandums using a word processing application. Develop a spreadsheet report that solves a business problem. Introduction: Company G operates a small chain of wholly owned home centers selling to consumers and contractors. Sales volume varies among the individual stores and ranges between $11 million and $20 million per year.
Objectives: Determine a firm’s financial condition by calculating and benchmarking specified ratios against other companies in the industry. Use the Internet to gather information on a specified business topic. Produce business letters or memorandums using a word processing application. Develop a spreadsheet report that solves a business problem. Introduction: Company G operates a small chain of wholly owned home centers selling to consumers and contractors. Sales volume varies among the individual stores and ranges between $11 million and $20 million per year. The company is organized as a corporation and does not operate as a sub chapter S corporation. Given: Consolidated financial statements for Company G are shown on the attached “Statement Analysis Template.” • Sales volume shown is net sales. • During Year 12 60% of net sales were on a credit basis. • Inventory is stated at cost on a first in, first out basis. • Depreciation expense totaled $1,875,000 for Year 12 and $1,644,000 for Year 11. • Depreciation expense is not shown as a separate item on the income statements but is included in store operating expense and general and administrative expense. • Depreciable assets are depreciated using the straight line method over the estimated useful life of the assets. ? The market value for the company common stock at the end of Year 11 was $3.50/share and at the end of Year 12 it was $5.75/share. For this task, you will use financial statements and pertinent industry data to interpret Company G’s financial condition. The required ratios have been calculated for Year 11 and are shown on the attached “Statement Analysis Template.” Ratios gathered from financial statements that were submitted to banks and other financing institutions by a large number of home centers are also included on the template. The industry ratios included on the template were generated from statements submitted by stores with annual sales between $10 million and $24 million. As…
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Task 1 descri….docx
1st task.pdf