ACC 291 Ratio Analysis Memo
in Accounting by vommsYour Price: $15.99 (30% discount)
You Save: $6.85
Description
Ratio Analysis Memo
ACC 291: Principles of Accounting II
University of Phoenix
Team A has completed a ratio analysis for Riordan Manufacturing. The team analyzed liquidity ratios, profitability ratios, and solvency ratios. The team also did a horizontal and vertical analysis for company's balance sheet and the income statement.
Liquidity ratios are the temporary capabilities of a business to compensate for its established requirements and unanticipated needs for cash. Suppliers and bankers are the short-term creditors who are mostly interested in liquidity ratios. The acid-test ratio, current ratio, inventory ratio, and receivables turnover are the ratios used to establish the company's short-term capability. To determine the current ratio, divide the current assets by the current...