Application – Using Ratio Analysis To Inform Organizational Decisions
The Assignment: Barry Computer Company
Prepare a performance report on Barry Computer Company. (Problem 4-23 on pages 131-132 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 131-132, 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.