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.)
o 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.
o Write a short memo to your supervisor explaining your findings and your recommendations for improvement.
o Suggest some ways in which the company can plan to improve below industry average ratio performance.
o Explain why your recommendations would be effective.
o Be sure to list your computations in an appendix to your report.
General Guidance on Application Length:
The memo portion of this assignment will typically be 2 pages in length as a general expectation/estimate. You can show your calculations of financial ratios in a supplemental appendix to your memo. Refer to the rubric for the Week 2 Assignment for grading elements and criteria for the assignment. Your Instructor will use the rubric to assess your work.