Acc 291 Virtual Analysis Paper

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Virtual Analysis Memo Lizbeth Galvan, Emilie MaeR.Jimenez, Laura Abadia-Barazza, Michael Collins ACC/291 April 27, 2013 Mihcael Barsch Abstract The following virtual analysis will show some financial information on the following company, Berrys Bugs Blasters that my team and I have examined. This shows the results after reviewing the organizations balance sheet and income statement. Liquidity ratios, Profitability ratios, and Solvency ratios have been computed to determine the analysis. Also once the analysis was configured the team has wrote a memo showing the horizontal and vertical analysis, as well as some information on what the previous ratios reveal about the company’s financial position. It will also explain why users may be interested in each type of ratio. The last thing…show more content…
Also, which users could be interested in each type of ratio. The data collected has revealed the company’s performance and position. Profitability ratios measure a company’s ability to generate earnings relative to sales, assets, and equity. These ratios assess the ability of a company to generate earnings, profits, and cash flows relative to relative to some metric, often the amount of money invested. They highlight how effectively the profitability of a company is managed. These ratios are important for investors and lenders to see how the company is operating and handling their assets. The ability to pay back debts and bills shows how financially healthy a company

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