28 May Please fill out the spreadsheet in the file be
Please fill out the spreadsheet in the file below. Module 03 Assignment Spreadsheet Also, write a 350-500 word APA formatted paper explaining the analysis completed and what the values mean. Use at least three credible sources to support your stat…
Also, write a 350-500 word APA formatted paper explaining the analysis completed and what the values mean. Use at least three credible sources to support your statements.
Submit both your spreadsheet and a Word document containing your analysis in a zip file.
Module 3 Deliverable
| Rainbird Car Wash Company had the following current assets and current liabilities at the end of two recent years: | ||||
| Compute a horizontal analysis on the selected accounts: | ||||
| Current Year | Previous Year | |||
| (in millions) | % Change | (in millions) | ||
| Cash and cash equivalents | $3,931 | $4,041 | ||
| Short-term investments, at cost | 2,792 | 7,504 | ||
| Accounts and notes receivable, net | 8,877 | 7,697 | ||
| Inventories | 1,755 | 2,341 | ||
| Prepaid expenses and other current assets | 585 | 866 | ||
| Short-term obligations | 312 | 3,314 | ||
| Accounts payable | 7,488 | 7,376 | ||
| a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. | ||||
| Current Year | Previous Year | |||
| 1. Current ratio | ||||
| 2. Quick ratio | ||||
| Inventory Analysis | ||||
| Rainbird and Menards compete with each other in selling car care products. Selected financial information for both companies from recent financial statements follows (in millions): | ||||
| Rainbird | Menards | |||
| Sales | $56,940 | $120,357 | ||
| Cost of goods sold | 44,754 | 92,385 | ||
| Inventory, beginning of period | 1,382 | 6,317 | ||
| Inventory, end of period | 1,404 | 7,490 | ||
| a. Determine for both companies (1) the inventory turnover and (2) the number of days' sales in inventory. Round your calculations and answers to one decimal place. Assume 365 days a year. | ||||
| Rainbird | Menards | |||
| 1. Inventory turnover | ||||
| 2. Number of days' sales in inventory | days | days | ||
| Solvency/Profitability | ||||
| The balance sheet for Rainbird Car Wash Company at the end of the current fiscal year indicated the following: | ||||
| Bonds payable, 8% | $5,000,000 | |||
| Preferred $4 stock, $50 par | 2,500,000 | |||
| Common stock, $10 par | 5,000,000 | |||
| Income before income tax expense was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year. | ||||
| Determine each of the following. Round to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. | ||||
| a. Earnings per share on common stock | ||||
| b. Price-earnings ratio | ||||
| c. Dividends per share of common stock | ||||
| Write a 350-500 word APA formatted paper explaining the analysis completed and what the values mean. Use at least three credible sources to support your statements. |
