Fnt 1

In: Business and Management

Submitted By dodge78
Words 894
Pages 4
Competency 319.1.2: Ratios - The graduate determines the financial condition of a firm
using financial ratios and other financial data.
Competency 319.2.1: Technology Tools - The graduate uses information technology
tools for specified business purposes.
319.1.2-04: Determine a firm’s financial condition by calculating and benchmarking
specified ratios against other companies in the industry.
319.2.1-01: Use the Internet to gather information on a specified business topic.
319.2.1-02: Produce business letters or memorandums using a word processing
319.2.1-03: Develop a spreadsheet report that solves a business problem.
Company G operates a small chain of wholly owned home centers selling to consumers and
contractors. Sales volume varies among the individual stores and ranges between $11
million and $20 million per year. The company is organized as a corporation and does not
operate as a sub-chapter S corporation.
Consolidated financial statements for Company G are shown on the attached “Statement
Analysis Template.”

Sales volume shown is net sales.
During Year 12 60% of net sales were on a credit basis.
Inventory is stated at cost on a first-in, first-out basis.
Depreciation expense totaled $1,875,000 for Year 12 and $1,644,000 for Year 11.
Depreciation expense is not shown as a separate item on the income statements but
is included in store operating expense and general and administrative expense.
• Depreciable assets are depreciated using the straight-line method over the estimated
useful life of the assets.
 The market value for the company common stock at the end of Year 11 was
$3.50/share and at the end of Year 12 it was $5.75/share.
For this task, you will use financial statements and pertinent…...

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