Assignment Type:Group Project Deliverable Length:
400–600 words plus charts; 500–600 words plus...

Question

Assignment Type:Group Project Deliverable Length: 
400–600 words plus charts; 500–600 words plus charts 
Points Possible:200 Due Date:7/7/2013 
11:59:59 PM CT  Library Research Assignment
Individual Portion:

Use www.msn.com to find 
financial statements for any "for profit" company in the computer hardware 
industry.

enter the company symbol
go to menu on left side of screen
go to financial results
go to financial ratios
Complete a ratio analysis for that company's last year's financial data. At 
a minimum, list and discuss the company performance vs. its industry average for 
these 4 ratios:

Profit as percent of sales
Current ratio
Debt to equity ratio
ROE
Comment on

how these ratios depict the financial health of this company as compared to 
the industry average.
what the company might do to get better in each area.
Please add your file.
Group Portion:
Given the metrics your accountant told you are evaluated in nonprofits, you 
asked her to educate you on how to assess the health of a nonprofit. You asked 
her the following:

Find and review the financial statements of any nonprofit symphony
In a report of 500–600 words, comment specifically on the following:

What is the major source of the change in net assets that occurred in 2007 
from the change that occurred in 2008? In your opinion, is this trend likely to 
continue? Why/why not?
If we assume that program expenses of the symphony should generally vary 
with ticket revenues, do they vary between 2007 and 2008? What could your answer 
indicate may be happening?
Is investment income a significant part of total sources of revenue in 2007 
or 2008? Does this indicate a major concern about the reduction in the fair 
market value of investments between 2007 and 2009?
Based on your analysis above and any other analyses, comment on the future 
economic viability of this organization.
Please add your file.
The following grading criteria will apply to this 
assignment:

Grading Criteria

Individual Portion

10%

Complete a ratio analysis 
for that company's last year's financial data. At a minimum, list and discuss 
the company performance vs. its industry average for these 4 ratios:

Profit as percent of sales
Current ratio
Debt to equity ratio
ROE

15%

Comment on how these ratios 
depict the financial health of this company as compared to the industry 
average.

15%

Comment on what the company 
might do to get better in each area.

Group Portion

15%

What is the major source of 
the change in net assets that occurred in 2007 from the change that occurred in 
2008? In your opinion, is this trend likely to continue? Why/why 
not?

15%

If we assume that program 
expenses of the symphony should generally vary with ticket revenues, do they 
vary between 2007 and 2008? What could your answer indicate may be 
happening?

15%

Is investment income a 
significant part of total sources of revenue in 2007 or 2008? Does this indicate 
a major concern about the reduction in the fair market value of investments 
between 2007 and 2009?

15%

Based on your analysis above 
and any other analyses, comment on the future economic viability of this 
organization.

David · Accepted Answer

Page | 1 
 
INDIVIDUAL PORTION: 
Ratio Analysis of the last year’s Financial Data 
1. Profit as percent of sales =   Profit * 100  
                                             Sales
                                       =      19497576  * 100 
                                                84469721
                                       =      23% 
2. Current Ratio = Current Assets 
                          Current Liabilities
                       = 54847586 
                          32835699
                       = 1.67 
3. Debt to Equity Ratio = Debt 
                                     Equity
                                  = 8271+26370689+4142473+2362063 
                                                 47917575
                                  = 32883496 
                                     47917575
                                 = 0.67
4. Return on Equity (ROI) = EAFESH 
                                            Equity
                                       = 8561825 
                                          47917575
                                       = 17.88%
Page | 2 
 
COMMENT;
As per the Ratios as depicted above, we can declare the fact that the position of the 
Computer Hardware Industry is not good and it is advisable for the various investors to 
invest their money in the same after making a proper analysis. The profit margin to sales 
is 23%, which is not acceptable for any kind of an investor in the computer hardware 
industry. The accepted norm for the computer industry is 34.52%. Therefore the profit to 
sales margin is not acceptable for any investor.  
                   Current ratio helps in determining the ability for any company to meet its 
current obligation or any kind of short term liabilities. Generally accepted norm for this 
particular purpose is 2:1. But according to the CHORE Committee, the accepted norm is 
1.33:1. In this particular case, the current ratio is quite suitable according to the Chore 
committee which means that the AMT COMPUTERS ( the Computer Hardware 
company) can meet its current obligation.  
        The set standard norm for the debt to Equity ratio is 2 to 3. As per this fact, it means 
that having a standard between this is suitable for any form of company.

Grading Criteria
Individual Portion
10%	Complete a ratio analysis for that company's last year's financial data. At a minimum, list and discuss the company performance vs. its industry average for these 4 ratios: Profit as percent of sales Current ratio Debt to equity ratio ROE
15%	Comment on how these ratios depict the financial health of this company as compared to the industry average.
15%	Comment on what the company might do to get better in each area.
Group Portion
15%	What is the major source of the change in net assets that occurred in 2007 from the change that occurred in 2008? In your opinion, is this trend likely to continue? Why/why not?
15%	If we assume that program expenses of the symphony should generally vary with ticket revenues, do they vary between 2007 and 2008? What could your answer indicate may be happening?
15%	Is investment income a significant part of total sources of revenue in 2007 or 2008? Does this indicate a major concern about the reduction in the fair market value of investments between 2007 and 2009?
15%	Based on your analysis above and any other analyses, comment on the future economic viability of this organization.

Assignment Type: Group Project Deliverable Length: 400–600 words plus charts; 500–600 words plus charts Points Possible: 200 Due Date: 7/7/2013 11:59:59 PM CT Library Research Assignment Individual...

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