Question

THIS IS THE QUESTION I NEED ANSWERED, CALCULATIONS PROVIDED BELOW: From your analysis, summarize the major strenths and weaknesses comparing *scroll to the right to see 2010 analysis     Summer's 2017 and 2016 performance. Summarize part 6 A through M.
Current Ratio	2011		2010
Current Assets / Current Liabilities	8.54	(478250/56000)	6.86	(329150/48000)
Strengths and Weaknesses
Current Ratio is calculated by dividing the company's total current assets by the company's total current liabilities. This ratio is a widely used measure of a firm's ability to meet it's current obligations & to have funds available for use in daily operations.
A generally accepted rule of thumb is that the current ratio should be 2:1, indicating that a company should maintain twice the dollar amount of current assets as was needed to satisfy it's current liabilities.
2011's current ratio was better than 2010
PART 6 B.	2011		2010
Quick Ratio
Cash & cash equivalents + short term investments + Accts Recievable) /	3.15	(176200+238850)/56000	5.94	(253100+31850)/48000
Current Liabilities
Strengths and Weaknesses
Quick ratio reveals the relationship between the company's Liquid Assets and it's Current Liabilities. It gives a more accurate picture of a company's ability to meet current obligations since the ratio ignores potentially illiquid inventory and prepaid expenses.
The higher the ratio, the the more financially secure a company is in the short term. 2010 has the better ratio
PART 6 C.	2011		2010
Rate of Return on Total Assets	0.026	(27100/1049800)	0.073	(70100/963700)
Net Income / Average Total Assets
Strengths and Weaknesses
The rate of return on total assets reveals the rate of profit earned per dollar of assets under a firm's control.
Both 2011 and 2010 have poor ratios, but 2010 is slightly better.
PART 6 D.
Rate of Return on Common Stockholder's Equity	2011		2010
(Net Income - Preferred Stock Dividends) / Average common stockholders equity
Strengths and Weaknesses
The return on common stockholder's equity measures the profitability of the ownership interest held by a company's common stockholders. The ratio shows the percentage of income available to common stockholders- that is, net income less any preferred stock dividends - for each dollar of common stockholder equity invested in a business.
PART 6 E.	2011		2010
Earnings Per Share
(net income-preferred dividends) / outstanding common shares		(27100-0) /
Strengths and Weaknesses
PART 6 F.	2011		2010
Accounts Receivable Turnover
Net Sales / Average Accts Recievable (Net)	1.92	(260000/135350)	10.5	(521000/49600)
Strengths and Weaknesses
The Accounts Recievable Turnover measures the ability to collect cash from customers. A higher turnover indicates that the company is converting their recievables at a faster rate.
2010 is much higher than 2011.
	2011		2010
Average Collection Period	190.01	(365/1.921)	34.76	(365/10.50)
365 / Accts Recievable Turnover (Net)
Strengths and Weaknesses
The average collection period indicates how many days remain in accounts receivable. The lower the # of days, the quicker you are converting the recievables into cash. 2010 had the better average collection period.

Answer 1