Accounting for managers

Accountingfor managers

KimberlyShears Barnes

AC1208360

Lesson8: Statement of Cash Flows, Financial Statement Analysis, andSustainability

Assignment8_12

July27, 2015

FinancialStatement Analysis for Harris Corporation

a. The acid-testratio for the current year is calculated as follows:

Acid-test ratio= = =1.44

b. Inventoryturnover for the current year can be determined as follows:

Inventoryturnover = = = 12.38

c. Day’s salesin receivables for the current year is calculated as follows:

Days’sales in Receivables =

=(33,800 * 365)/520,125

Therefore, day’ssales in receivables = 23.72

d. Book value per share of common stock for the current year isdetermined as follows:

Book value = =

Therefore, book valueper share of common stock = = 104,400/3000

=34.8

e. Price-earningsfor the current year can be determined as follows:

Price-earnings =

Earningsper share = = = $19.2/share

Therefore, price-earnings for the current year = = 2.604

f.Rate of return on total assets for the current year is determined asfollows:

Returnon total assets =

== =0.748

g.The times-interest-earned ratio for the current year is determined asfollows:

Times-interest-earnedratio = = = 3.45

h. Current ratiofor the current year is calculated as follows:

Current ratio == = 2.36

References

Bragg, S. M. (2012). Business ratios and formulas: A comprehensiveguide. Hoboken, N.J: Wiley.