# Financial Analysis problem

August 14, 2017

check out the attachments!!!!!!!!!!!!!!!!!!Financial Statement Analysis provides
information that indicates how a company is performing. By comparing financial statements of
different years, a manager can make informed decisions about investments,
expenditures, and activities that impact revenues.
Directions: Read the chapter in the text titled âFinancial Statement
Analysis.â Using the comparative financial statements for Baby Cakes
International Inc. (see âBabyCakes_Financial_Project_Data.xlsâ linked in the
lesson activities) , complete the following tasks.
Note:The
market price of BabyCakes Intâl, Inc. common stock was \$20 on December 31, 2008.
Part
A:
Complete the 19 ratios listed
below.
Determine the following measures for 2008:
1. Working Capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of daysâ sales in receivables
6. Inventory turnover
7. Number of daysâ sales in inventory
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholdersâ equity
10.Number of times interest charges earned
11.Number of times preferred dividends earned
12.Ratio of net sales to assets
13.Rate earned on total assets
14.Rate earned on stockholdersâ equity
15.Rate earned on common stockholderâs equity
16.Earnings per share on common stock
17.Price-earnings ratio
18.Dividends per share of common stock
19.Dividend yield

Part B:
Explain what the results of
each ratio indicate about the company.

Part C:
Complete a horizontal analysis
for the Income Statement, and explain your findings.

Part D:
Complete a vertical analysis for the
Income Statement, and explain your findings.

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