Assignment: Application – Using Ratio Analysis To Inform Organizational Decisions The Assignment: Barry Computer Company Prepare a performance report on Barry Computer Company. (Problem 423 on pages 131132 of the course text provides a balance sheet and an income statement for the company.) Prepare your performance report to show calculations for the eleven ratios listed on page 131132, as well as a comparison of your computed ratios with the listed industry averages. Write a short memo to your supervisor explaining your findings and your recommendations for improvement. Suggest some ways in which the company can plan to improve below industry average ratio performance. Explain why your recommendations would be effective. Be sure to list your computations in an appendix to your report
Required Readings
Document: Week 2 Weekly Briefing (PDF)
The Weekly Briefing provides an essential introduction to the content and concepts that you will be studying during the week. After viewing the weekly introduction, the Weekly Briefing should be your initial reading each week.
Brigham, E. F. , & Houston, J. F. (2016). Fundamentals of financial management (14th ed.). Boston, MA: Cengage Learning.
Chapter 2, “Financial Markets and Institutions” (pp. 25–52)
In this chapter, the authors describe the markets where capital is raised, securities are traded, and stock prices are established, and the institutions that operate within these markets.
Brigham, E. F. , & Houston, J. F. (2016). Fundamentals of financial management (14th ed.). Boston, MA: Cengage Learning.
Chapter 3, “Financial Statements, Cash Flow, and Taxes” (pp. 57-86)
In this chapter, the authors describe concepts covered in a basic accounting course.
Brigham, E. F. , & Houston, J. F. (2016). Fundamentals of financial management (14th ed.). Boston, MA: Cengage Learning.
Chapter 4, “Analysis of Financial Statements” (pp. 99-125)
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In this chapter, the authors describe how financial statements are used by managers to improve the firm’s value and creditworthiness.