Apply ratio analysis to financial statements.

#### Introduction

**Note**: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Ratio analysis is done to compare trends over time.

Ratio analysis is a managerial accounting tool for making and evaluating managerial decisions.

#### Instructions

**Note**: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Use the __Ratio Analysis Template [XLSX]__ to complete this assessment. Complete the problems based on the data provided in the template.

#### Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

- Competency 4: Analyze financial statements.
- Calculate a current ratio.
- Calculate an acid-test ratio.
- Calculate the number of days sales are uncollected.
- Calculate an inventory turnover.
- Calculate the amount sold per day in the inventory of an entity.
- Calculate a debt-to-equity ratio.
- Calculate the number of times interest is earned.
- Calculate a profit margin ratio.
- Calculate a total asset turnover.
- Calculate a return on total assets.
- Calculate a return on common stockholders’ equity.

- Competency 5: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.