Modules Module 2 SLP The Balance Sheet The Pu

Modulesmodule2mod2slphtmlmodule 2 Slpthe Balance Sheetthe Purpose

Modules/Module2/Mod2SLP.html Module 2 - SLP The Balance Sheet The purpose of this SLP is to apply ratio analysis to assess the financial health of ABC Company. Use the balance sheet presented in the case during this module to compute solvency and efficiency ratios. Compute three ratios based on balance sheet accounts for which you have sufficient information. Assume that ABC Company is a small specialty retail store. IBIS is a comprehensive resource containing market research and statistics, which can be used to compare ABC Company to the industry and leaders in the industry.

Comment on ABC’s ratios by answering the following questions. What is the purpose of computing these particular ratios? What did you learn from reviewing the three ratios? What is your conclusion about the solvency and efficiency of the company? How successful is ABC Company relative to the industry average and leaders in the small specialty retail store industry?

SLP Assignment Expectations Show the formulas for the computations. Two to three sentences are sufficient to respond to the three questions. Do not use an essay format. Show sources when appropriate and APA format is suggested, but not required. The objective for this assignment is to apply ratio analysis based on balance sheet accounts.

Privacy Policy | Contact Modules/Module2/Mod2Case.html Module 2 - Case The Balance Sheet Assignment Overview Review the background material for the second module before attempting the case below in order to answer a series of questions about the balance sheet for ABC Company shown below. Start with the accounting equation and pay attention to definitions of assets, liabilities, and equity. Case Assignment Required Answer the questions below and explain your answer with numbers, computations, or a sentence or two. Determine total assets and total liabilities for ABC Company. Complete the accounting equation below using numbers instead of words.

Assets = Liabilities + Equity Are short-term payables or receivable larger? Explain the significance of the difference. Is the order in which assets and liabilities are listed on the balance sheet significant? Explain. Determine the total amount owed by ABC at the end of the year. Does the company have more assets or liabilities? What is the significance of determining the difference between net assets and net liabilities? If the company borrows an additional $10,000 which two balance sheet accounts will change? The new totals for total assets and total liabilities are … Explain retained earnings. What is the “total wealth†of the company have according to the balance sheet? Assume that the company paid $10,000 of dividends to the owners. Which balance sheet account (item) would have been affected by the payment? Assignment Expectations Respond to all questions showing your computations and/or using your own words. Do not use an essay format. Show sources when appropriate and APA format is suggested, but not required.

The objective for this assignment is to evaluate accounting concepts of balance sheet. Privacy Policy | Contact images/ABC Company.png