You are a first year accountant assigned to the Sanderson account.
Prepare the following in an Excel worksheet for submission to your supervisor. Your worksheet must be a .xls or .xlsx file. Your worksheet must be organized, labeled and easy to understand. (Round ratio amounts to two decimals.)
Your analysis, in Word must be clear and supported by the facts. Your analysis must be detailed and a minimum of three paragraphs. You will be graded on how well you address the questions. Addressing the questions involves identifying relevant facts, applying the chapter concepts,, and answering each question completely.
Note: Your analysis memo will be submitted for plagiarism detection. Your submission must return less than 20% similarity index in order to be graded.
Sanderson Company’s year-end financial statements follow. Analyze its year-end short-term liquidity position at the end of 2012, 2011, and 2010 by computing:
- the current ratio
- the acid-test ratio
Evaluate the company’s efficiency and profitability by computing the following for 2012 and 2011:
- profit margin ratio
- total asset turnover
- return on total assets
In a separate Word document, comment on these ratio results. What conclusions can be drawn about the company?





