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    Activity 3

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    Jhe Ca
    This document provides directions for analyzing the financial statements of Corrigan Corporation for the years 2014 and 2015. Students are asked to calculate various financial ratios related to liquidity, activity, and stability for each year, and to provide the calculation formula, solution, and interpretation for each ratio. The document also lists assumptions to consider when interpreting the ratio analysis results, such as Corrigan Corporation's credit terms, inventory turnover compared to competitors, and relationships between various line items on the financial statements.

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    Activity 3

    Uploaded by

    Jhe Ca
    26 views2 pages
    This document provides directions for analyzing the financial statements of Corrigan Corporation for the years 2014 and 2015. Students are asked to calculate various financial ratios related to liquidity, activity, and stability for each year, and to provide the calculation formula, solution, and interpretation for each ratio. The document also lists assumptions to consider when interpreting the ratio analysis results, such as Corrigan Corporation's credit terms, inventory turnover compared to competitors, and relationships between various line items on the financial statements.

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    Activity-3

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    This document provides directions for analyzing the financial statements of Corrigan Corporation for the years 2014 and 2015. Students are asked to calculate various financial ratios related to liquidity, activity, and stability for each year, and to provide the calculation formula, solution, and interpretation for each ratio. The document also lists assumptions to consider when interpreting the ratio analysis results, such as Corrigan Corporation's credit terms, inventory turnover compared to competitors, and relationships between various line items on the financial statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    26 views2 pages

    Activity 3

    Uploaded by

    Jhe Ca
    This document provides directions for analyzing the financial statements of Corrigan Corporation for the years 2014 and 2015. Students are asked to calculate various financial ratios related to liquidity, activity, and stability for each year, and to provide the calculation formula, solution, and interpretation for each ratio. The document also lists assumptions to consider when interpreting the ratio analysis results, such as Corrigan Corporation's credit terms, inventory turnover compared to competitors, and relationships between various line items on the financial statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    FIMA 30013-Financial Management

    Activity 3 – Financial Reporting and Analysis


    Direction: Apply all financial ratios (Liquidity, Activity and Stability) in the analysis of Corrigan
    Corporation’s Balance Sheets and Income Statements for the years 2014 and 2015. Each financial
    ratio should have a format like this:
    Formula:
    Solution:
    Interpretation:

    For Liquidity and Stability Ratios: Compute for each year 2014 and 2015.
    Take note of the following assumptions that you can use to interpret the result of your ratio
    analysis:
    1. Corrigan Corporation has a credit term of 30 days to their clients/borrowers.
    2. Corrigan Corporation received 45-day credit term from their creditors/suppliers.
    3. Most of the competitors of Corrigan Corporation have an inventory turnover of 150
    days.
    4. Net purchases is the same as the Cost of Goods Sold.
    5. Operating profit is the same as Earnings before interests and taxes (EBIT)

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