ASSIGNMENT 3?Completed by?Reviewed by? THE BALANCE SHEET 1. Locate the company

ASSIGNMENT 3?Completed by?Reviewed by?
THE BALANCE SHEET1. Locate the company’s balance sheet.
Balance sheet date: __________________
Page on which balance sheet appears: _________
2. The accounting equation is Assets = Liabilities + Stockholders’ Equity (remember that a balance sheet balances). Replacing the words in the accounting equation with dollar amounts; give the company’s accounting equation at the end of the current and prior years. If the amounts are listed in millions, make sure you state this.
Assets = Liabilities + EquityDate for This year ________________
Equation figures: (A)_______________ = (L)______________ + (E)_______________
Date for Last year ________________
Equation figures: _______________ =______________ +_______________
3. Calculate the company’s current ratio for both this year and the prior year.Show your computations and then the result. Present the figure correctly; each ratio has a specific format.
The Equation for current ratio is: ___________________
This year: = ___________________ (show your work) = ____________ (result)
Late year: = ___________________ (show your work) = ____________ (result)
Explain what information this ratio provides. (Hint: See the Financial Statement Analysis chapter of your textbook.) Use complete sentences.
Has the current ratio improved or worsened? Explain your answer and add your comments on the results. Use complete sentences.
4. Calculate the company’s working capital for both this year and the prior year.Show your computations and then the result. Present the figure correctly; each ratio has a specific format.
The Equation for working capital is: ___________________
This year: = ___________________ (show your work) = ____________ (result)
Late year: = ___________________ (show your work) = ____________ (result)
Explain what information this figure provides. Use complete sentences.
Has the result improved or worsened? Explain your answer and add your comments on the results. Use complete sentences.
5. Calculate the company’s debt to total assets ratio (also called total debt to equity) for both this year and the prior year.Show your computations and then the result. Present the figure correctly; each ratio has a specific format.
The Equation for debt to total assets ratio is: ___________________
This year: = ___________________ (show your work) = ____________ (result)
Late year: = ___________________ (show your work) = ____________ (result)
Explain what information this ratio provides. Use complete sentences.
Has the ratio improved or worsened? Explain your answer and add your comments on the results. Use complete sentences.