Accounting and Finance Foundations

Unit 11

Accounting and Finance Foundations Unit 11: Financial Analysis 878

Financial Analysis

Chapter 26

Student Assignment

Lesson 26.2 Culminating Project B (cont’d)

Requirements:

As a financial analyst for Newton Park, you have been asked to prepare the annual analysis report using key

performance indicators and vertical analysis.

1. Determine the current ratio for Newton Park.


2. Determine the debt ratio for Newton Park.


3. Determine the inventory turnover for Newton Park. Note that cost of goods sold is $43,000 for the year,
   and concessions and gift shop inventory was $17,000 as of January 1.


4. Determine the return on assets for Newton Park. Note that the net income was $26,250, and the total
   assets were $750,000.


5. Determine salaries payable as a percentage of total liabilities and equity.