Sample content Ratio Analysis Memo ACC/291 Ratio Analysis Memo • Liquidity ratios ➢ Existing ratio== ➢ Acid-test, or swift, ratio= Receivables turnover = ➢ Stock turnover= • Profitability ratios ➢ Asset turnover = (Supposing Total Assets were 32,359,420 in the commencement of 2004) 2005 2004 Times Times ➢ Profit margin = 2005 2004 ➢ Return on assets = (Supposing Total Assets were 32,359,420 in the commencement of 2004) 2005 2004 ➢ Return on ordinary shareholders’ assets= 2005 2004 • Solvency ratios ➢ Liability to total assets= total liability Total assets $12,476,927 =36% $34,592,182 ➢ Times interest earned= income before income taxes & interest expenditure Interest expenditure $3,042,820 = 21.25 times $143,175 Horizontal: RIORDAN MANUFACTURING, INC. Condensed Balance Sheet September 30 2005 2004 Amount Percent Assets: Existing Assets Cash $305,563 $357,216 ($51,653) (14.4%)

1. ACC 291 Learning Team Assignment RATIO ANALYSIS MEMO
Link : http://uopexam.com/product/acc-291-learning-team-assignment-ratio-analysis-memo/
Sample content
Ratio Analysis Memo
ACC/291
Ratio Analysis Memo

2. • Liquidity ratios
➢ Existing ratio==
➢ Acid-test, or swift, ratio=
Receivables turnover =
➢ Stock turnover=
• Profitability ratios
➢ Asset turnover =
(Supposing Total Assets were 32,359,420 in the commencement of 2004)
2005 2004
Times Times
➢ Profit margin =
2005 2004
➢ Return on assets =
(Supposing Total Assets were 32,359,420 in the commencement of 2004)
2005 2004
➢ Return on ordinary shareholders’ assets=
2005 2004
• Solvency ratios
➢ Liability to total assets= total liability

3. Total assets
$12,476,927 =36%
$34,592,182
➢ Times interest earned= income before income taxes & interest
expenditure
Interest expenditure
$3,042,820 = 21.25 times
$143,175
Horizontal: RIORDAN MANUFACTURING, INC.
Condensed Balance Sheet
September 30
2005
2004
Amount
Percent
Assets:
Existing Assets
Cash
$305,563
$357,216

4. ($51,653)
(14.4%)
Accounts Receivable
6,062,838
5,657,216
405,622
7.1%
Existing Portion of Notes Receivable
70,825
117,888
(47,063)
(39.9%)
Stocks
7,850,970
7,854,112
(3,142)
(400.0%)
Delayed Income Taxes(Net)
328,832

5. (328,832)
(100.0%)
Prepaid Expenses & Other Items
264,896
328,192
(63,296)
(19.2%)
Total Existing Assets
$14,555,092
$14,643,456
($88,364)
(.6%)
Notes Receivable, Less Existing Part
256,583
177,408
79,175
44.6%
Purchase of Joint Venture
283,504
133,504

6. 150,000
112.3%
Property, Plant, & Equipment
19,114,830
18,511,360
603,470
3.2%
Intangible Assets-Net
329,405
336,128
(6,723)
(2.0%)
Other Assets
57,768
54,400
3,368
6.1%
Total Assets
$34,592,182

7. $33,856,256
$735,926
2.1%
Debts & Stockholders’ Assets
Existing Debts
Existing Part of Long-Term Liability
$1,219,258
$1,106,304
112,954
10.2%
Accounts Due
3,650,073
6,573,248
76,825
2.1%
Accounts Debts
1,350,114
1,350,114
0
0

8. Income Taxes Due
754,619
754,619
(100.0%)
Total Existing Debts
$6,974,084
$6,029,696
$944,389
15.6%
Bank Line of Credit
253,727
487,936
(234,209)
(47.9%)
Long-Term Liability-Less existing part
2,768,752
2,535,552
233,200
9.1%

9. Delayed Income Taxes(Net)
2,485,354
3,107,072
(621,718)
(20.0%)
Total Debts
$12,476,927
$12,160,256
$316,671
2.6%
Ordinary Shares
Declared par value is $0.1
20,000,000 shares authorized
Issued- Outstanding 15,801,332
Net of Treasury Shares
$29,055,488
$29,055,488
0
0
Other Built up Extensive Losses

10. (202,496)
(202,496)
(100%)
Built up Deficit
(6,940,233)
(7,156,992)
(216,759)
(3.0%)
Total Stockholders’ Assets
$22,115,255
$21,696,000
$419,255
1.9%
TOTAL DEBTS & SHAREHOLDERS’ ASSETS
$34,592,182
$33,856,265
$735,926
2.1%
RIORDAN MANUFACTURING, INC

11. Condensed Income Statement
For the Years Ended September 30
2005
2004
Amount
Percent
Sales
$50,823,685
$46,044,288
$4,779,397
10.4%
Direct Cost of Items Sold
42,037,624
37,480,050
4,629,574
12.4%
Gross Margin
$8,786,061
$8,564,238
$221,823

12. 2.6%
Operating Sales
Sales & Marketing
$1,012,974
$920,886
$82,088
10.0%
Depreciation
343,445
349,937
(6,492)
(1.9%)
Quality Assurance
1,139,688
1,095,853
43,835
4.0%
Research & Development
911,676

13. 828,797
82,879
10.0%
General & Admission
1,706,953
1,524,066
182,887
12.0%
Machines & System
628,505
589,576
29,929
5.0%
Total Operating Expenditure
$
http://uopexam.com/product/acc-291-learning-team-assignment-ratio-analysis-memo/