There are two parts to the assignment. The first part is calculating the ratios. Refer to Chapter 4: Financial Statement Analysis and Investopedia. The second part is the Financial Performance Summary. The Summary should answer the following key questions: Is the organization profitable? Why or why not?
How effective is the organization in collecting its receivables? Is the organization in a good position to pay its bills? How efficiently is the organization using its assets? Are the organization’s plant and equipment in need of replacement? Is the organization in a good position to take on additional debt? Why or why not?
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