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    venom's Avatar
    venom Posts: 1, Reputation: 1
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    #1

    Sep 15, 2006, 09:48 AM
    Ratio Analysis
    Can someone help me please with this question?

    The lenders of X have asked you to prepare the following ratios for the company from their comparative financial statements. They are concerned about Soukup’s ability to continue as a going concern. The ratios are as follows:

    Year 2003

    Current ratio 2.1

    Working capital Down 7%

    Debt to total assets 0.70

    Net income Down 8%

    Earnings per share $1.15

    Price-earnings ratio 19.5


    Year2004

    Current ratio 3.1

    Working capital Up 22%

    Debt to total assets 0.60

    Net income Up 32%

    Earnings per share $2.40

    Price-earnings ratio 26.2

    Defend the company’s argument that its financial health is improving by citing the implications and limitations of each ratio listed.
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    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Sep 15, 2006, 12:29 PM
    Please refer to this Announcement
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