Bus 211 Financial Accounting Quiz

January 13, 2021

Chapter 12 Exam #4 Take-home portion (33 points total)

Due Friday Nov, 24, 2020 (upload to iLearn by 11:59 pm)

Financial Statement Analysis (chapter 12):

Bus 211 Financial Accounting Quiz Part I

Using the annual report from the company you have been using for the Financial Analysis Projects, prepare the following financial statement ratios on a separate sheet, using Word or Excel. (see page 680-681 for a discussion of many of the ratios)

Current ratio

Acid-test (Quick) ratio

Accounts receivable turnover

Days’ sales uncollected

Inventory turnover

Days’ sales in inventory

Total asset turnover

Debt ratio

Equity ratio

Debt-to-equity ratio

Times interest earned

Profit margin ratio

Gross margin ratio

Return on total assets

Return on common stockholders’ equity

Book value per common share

Basic earnings per share

Price-earnings

Dividend yield

Bus 211 Financial Accounting Quiz Part II

Compare your company’s ratios calculated in Part I with the industry ratios distributed in class and posted on iLearn. Use these ratios to analyze your company’s financial strength. This analysis should identify red flags (problems) or strengths of your company when compared to each ratio. A review of the financial statement ratios in your textbook will be helpful in your understanding of each ratio. Your analysis of each ratio must be at least 3-4 sentences. Include this discussion on the same document (word or excel) that you used to prepare Part I.

We will work through the entire project in class using the information from the Home Depot’s 10-K; however, the solutions will not be posted on iLearn like Part I, II and III of the Financial Analysis Project.

Grading Rubric

Your quiz will be graded based on the following rubric:

Category	Unacceptable (0-1)	Needs Improvement (2-3)	Good (4)	Excellent (5)	Total Possible Points

Organization (x3)	There is no apparent organization to the answers. They shows some coherence but ideas lack unity.	There is some level of organization though digressions, ambiguities, irrelevance are too many. Transition evident but not used throughout the paper.	Answers are coherent and logically organized with transitions used between ideas and paragraphs to create coherence. Overall unity of ideas is present.	Answers show high degree of attention to logic and reasoning of points. Unity clearly leads the reader to the conclusion and stirs thought regarding the topic.	15
Content (x3)	Answers lack evidence of critical thinking. Writer uses superficial, simplistic, or irrelevant reasons and unjustifiable claims. Makes illogical, inconsistent inference.	Answers are primarily opinion without valid support. Little critical thinking is evident. Follows existing evidence to obtain conclusions.	Ideas are logical and reasoned, but demonstrate lesser degree of originality. Follows evidence and reason lead to obtain justifiable, logical conclusion.	Writer develops logical and reasoned independent ideas that go beyond predictable outcomes or the conclusions of researched materials. Follows where evidence and reason lead in order to obtain defensible, thoughtful, logical conclusions or solutions.	15
Grammar & Mechanics(x2)	Sentences are unclear and many grammatical errors in structure make answers virtually unreadable. Spelling, punctuation, capitalization, and vocabulary usage contain major flaws that impede readability.	Most spelling, punctuation, and grammar correct allowing reader to progress through the answers. Some errors remain.	Answers have few spelling, punctuation, and grammatical errors allowing reader to follow ideas clearly. Very few fragments or run-ons.	Answers are free of distracting spelling, punctuation, and grammatical errors; absent of fragments, comma splices, and run-ons.	5