Useul Financial Ratios Paper

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Business Finance

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With this information, you are able to calculate a number of financial ratios. However, financial ratios alone, while often very useful, are insufficient for a thorough financial analysis.
Identify at least 5 types of useful financial information you would like to use in conjunction with the ratios you could calculate from the information provided.


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Bacon Signs 2013 Income Statement (000's) Net Sales COGS Depreciation EBIT Interest EBT Taxes (35%) Net Income 2013 $7,418 $5,271 $745 $1,402 $305 $1,097 $384 $713 Dividends Paid Addition to Retained Earnings $250 $463 Bacon Signs 2012 and 2013 Balance Sheets (000's) Assets Cash A/R Inventory Total Current Assets 2012 $972 $1,680 $875 $3,527 2013 $500 $2,670 $738 $3,908 Net Fixed Assets $12,680 $14,155 Total Assets $16,207 $18,063 Liabilities A/P N/P Total Current Liabilities 2012 725 1525 2250 2013 1765 1178 2943 Long-Term Debt Common Stock Retained Earnings Total Liabilities and Equity 5000 4000 4957 16207 5500 4200 5420 18063
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Running Head: FINANCIAL RATIOS

1

Financial Ratios
Name
Institutional Affiliation

FINANCIAL RATIOS

2

After reviewing the income statement provided, it is possible to have a calculation of the
following financial ratios. These include current ratio debt ratio, cash ratio, interval measure and
profit margin. These ratios are important for understanding the financial wellbeing of the
company. The importance of these ratios to a b...


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