Access the information contained in the selected organization’s balance sheet and income statement to calculate the following:
· Liquidity ratios
o Current ratio
o Acid-test, or quick, ratio
o Receivables turnover
o Inventory turnover
· Profitability ratios
o Asset turnover
o Profit margin
o Return on assets
o Return on common stockholders’ equity
· Solvency ratios
o Debt to total assets
o Times interest earned
Upload an excel spreadsheet to show your calculations for each ratio, along with the memo. This means you should submit two files—1 (Memo) and 2 (Calculations.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
Write a 500- to 700-word memo to the CEO Riordan Manufacturing in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
· What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
· Which users may be interested in each type of ratio?
· What does the collected data reveal about the performance and position of the company?
Format your memo consistent with APA guidelines.
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