Ratio Analysis Memo-Riordan Manufacturing

Ratio Analysis Memo Resource: Virtual Organizations Click the Virtual Organization link on the student website to access the Virtual Organizations. Select the Virtual Organization assigned to your team, by the Instructor on week three. Access the information contained in your organization's balance sheet and income statement to calculate the following:

? Liquidity ratios

o Current ratio o Acid-test, or quick, ratio o Receivables turnover o Inventory turnover

? Profitability ratios

o Asset turnover o Profit margin o Return on assets o Return on common stockholders' equity

? Solvency ratios

o Debt to total assets o Times interest earned

Show your calculations for each ratio.

Create a horizontal and vertical analysis for the balance sheet and the...