when assessed over time or across companies. IBIS is a comprehensive
resource containing market research and statistics, which can be used to
compare ABC Company to the industry and leaders in the industry.
1. Show the computation of the three ratios.
2. Comment on the purpose and information conveyed by each ratio.
3. What did you learn about ABC Company by reviewing the three ratios?
4. What is your conclusion about the solvency and efficiency of the company?
5. How successful is ABC Company relative to the industry average and leaders
in the small specialty retail store industry? Write two paragraphs or more.
Include ratios found in the IBIS database to support your conclusion.
SLP - ACC201 Financial Accounting (2020OCT19FT-1) Module 2 - SLP THE BALANCE SHEET Before you start the assignment, test your understanding of concepts covered in the assignment. It is not a graded quiz, but a tool for reviewing some key points. The tool can be used multiple times. The purpose of this SLP is to apply ratio analysis to assess the financial health of ABC Company. Use the balance sheet presented in the case during this module to compute solvency and efficiency ratios. Compute three ratios based on balance sheet accounts for which you have sufficient information. Assume that ABC Company is a small specialty retail store. Ratios are relevant when assessed over time or across companies. IBIS is a comprehensive resource containing market research and statistics, which can be used to compare ABC Company to the industry and leaders in the industry. 1. Show the computation of the three ratios. 2. Comment on the purpose and information conveyed by each ratio. 3. What did you learn about ABC Company by reviewing the three ratios? 4. What is your conclusion about the solvency and efficiency of the company? 5. How successful is ABC Company relative to the industry average and leaders in the small specialty retail store industry? Write two paragraphs or more. Include ratios found in the IBIS database to support your conclusion. Below is a brief introduction to financial ratios using IBISWorld: Listen https://tlc.trident.edu/d2l/common/dialogs/quickLink/quickLink.d2l?ou=151122&type=quiz&rcode=TUI-291734 https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/https://app.readspeaker.com/cgi-bin/rsent?customerid=8725&lang=en_us&voice=Kate&readid=d2l_read_element&url=https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/Mod2SLP.html Financial Ratios - IBISWorld Industry Product The IBIS database is accessed through the Trident library. See the steps below. Step 1 Step 2 https://www.youtube.com/watch?v=6-JlnqWlyoU Step 3 Step 4 Step 5 SLP Assignment Expectations Show the formulas for the computations. Two to three sentences are sufficient to Privacy Policy | Contact respond to questions 1 through 4. See above for question 5 instructions. Do not use an essay format. Show sources when appropriate and APA format is suggested, but not required. http://www.trident.edu/privacy-policy http://www.trident.edu/university-information/contact-us Background - ACC201 Financial Accounting (2020OCT19FT-1) Background Module 2 - Background THE BALANCE SHEET Modular Learning Objectives Keep the following objectives in mind as you work through the material in this module: Describe the content and purposes of the balance sheet. State the basic accounting equation and describe its relationship to the balance sheet. Define assets, liabilities, and equity Differentiate between short-term and long-term assets. Differentiate between short-term and long-term liabilities. Interpret information presented in a balance sheet. Required Reading This module emphasizes the balance sheet. Click on the buttons below to review the following sections: Check Your Understanding Check your understanding to make sure that you have a good grasp of the background material. If you are not comfortable with the concepts, review some of the material again or go to the optional resource for more examples. Click on the Knowledge Check icon for an ungraded, 10- question true-or-false self-study activity to check your progress. If you are not satisfied with the score, review some of the material again. For more in-depth information, review materials listed under optional reading at the bottom of this page. Click on the icon for a glossary of accounting terms introduced in this module. Thoughts for Further Reflection Financial accounting encompasses the rules and procedures to convey financial information about an organization. Listen ACC201 Financial Accoun!ng (2020OCT19FT-1) QJ ACC201 Financial Accoun!ng (2020OCT19FT-1) Course Home Course Materials Assessments More https://tlc.trident.edu/d2l/le/content/151122/navigateContent/72/Previous?pId=3744577 https://tlc.trident.edu/d2l/le/content/151122/navigateContent/72/Next?pId=3744577 https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/Module%202%20BG-Introduction%20to%20the%20Balance%20Sheet.html?ou=151122 https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/Module%202%20BG-Components%20of%20the%20Balance%20Sheet.html?ou=151122 https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/Module%202%20BG-Putting%20It%20All%20together.html?ou=151122 https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/https://app.readspeaker.com/cgi-bin/rsent?customerid=8725&lang=en_us&voice=Kate&readid=d2l_read_element&url=https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/Mod2Background.html https://tlc.trident.edu/d2l/home/151122 https://tlc.trident.edu/d2l/lp/ouHome/defaultHome.d2l https://tlc.trident.edu/d2l/lp/ouHome/home.d2l?ou=6606 https://tlc.trident.edu/d2l/home/151122 Reflect in ePor!olio Download Print Open with docReader Financial accounting encompasses the rules and procedures to convey financial information about an organization. Individuals who attain a proper level of knowledge of financial accounting can utilize this information to make decisions based on the organization’s perceived financial health and outlook. Such decisions might include assessing employment potential, lending money, granting credit, and buying or selling ownership shares. However, financial accounting does not address issues that are purely of an internal nature, such as whether an organization should buy or lease equipment or the level of pay raises. Information to guide such internal decisions is generated according to managerial accounting rules and procedures that are introduced in other books and courses. Despite not being directed toward the inner workings of an organization, employees are interested in financial accounting because it helps them assess the future financial prospects of their employer. Optional Reading For further background detail refer to Dr. Walther’s accounting text and videos. Walther, L. (2016). Chapter 4: The Reporting Cycle. LICENSES AND ATTRIBUTIONS Privacy Policy | Contact Task: View this topic Ac"vity Details https://tlc.trident.edu/d2l/le/content/151122/navigateContent/72/Previous?pId=3744577 https://tlc.trident.edu/d2l/le/content/151122/navigateContent/72/Next?pId=3744577 https://www.principlesofaccounting.com/chapter-4/ https://tlc.trident.edu/content/enforced/151122-ACC201-2020OCT19FT-1/Modules/Module2/Licenses%20and%20Attributions%20Module%202.html?ou=151122 http://www.trident.edu/privacy-policy http://www.trident.edu/university-information/contact-us javascript:void(0);