accounting homeworkfinancial statement analysis and interpretation

Please do not plagiarism.

 

I attached Ratio Formaula and Financial Information of the Polaris Company.

Calculations are needed.

 

Access the Financial Statements of Polaris Company in Appendix A-1 and use the ratios as defined on page 707.
As the controller of your  Company you have been asked by the president and the treasurer if it would be wise 
to invest $200,000 in Polaris. 

Required: 
1) Compute each ratio listed below for Polaris for its years ending December 31, 2010, and December 31, 2011. 
2) Give a brief commentary about each ratio listed for Polaris for it’s years ending Dec 31, 2010, and Dec 31, 2011.
3) Interpret Polaris’s profitability with a brief company summary using the ratio results of #1 and #2.  
4) Give your recommendation whether to invest or not to invest $200,000 in Polaris and your reasons why. 
     

The format of your project should be as follows:
1.The File name  should be ……….. LAST NAME, Acctg 2 
2. Your name must appear on 
all pages.
3. The print margins should print on 8 1/2 by 11-check by clicking “print view” prior to submitting.
4. Each ratio must show a complete calculation.
5. Follow the format below using the number, letter and title for each requirement
.

                                                                                                                  

1) Calculate the following ratios for 2010 and 2011

                 (1a)   Profit margin ratio

                 (1b)    Gross profit ratio

                 (1c)    Return on total assets

                 (1d)    Return on common stockholder’equity 
                 (1e)    Basic earnings per share. USE the amounts given in the Financials

2. Write a brief commentary regarding the results of ratios

                 (2a)    Profit margin ratio

                 (2b)    Gross profit ratio

                 (2c)    Return on total assets

                 (2d)    Return on common stockholder’equity 
                 (2e)    Basic earnings per share 

                        
3. Executive Summary- This is an overview of section 2. Your analysis of the ratios.
  This summary should be: NO MORE THAN 1 PAGE, AT LEAST 1/2 page 

4. Recommendation-  The Recommendation should be: NO MORE THAN 1 PAGE –

          AT LEAST 1/2 A PAGE.   You must make a recommendation.

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