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# Cango: Balance Sheet and Ratio

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• Published : February 5, 2012

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BUSN460 Individual Financial Analysis Project
Student Name:
Instructions:
Go to the CanGo intranet found in the Report Guide tab under Course Home Use the financial statements from the most recent year to fill in the table below. You may find some formulae calling for an average, e.g., average inventory, average receivables. Because we only have the Balance sheet for one year, you can only use the one year number not an average. Assume interest expense is \$0.00

Be sure to cite your references
Green boxes to be filled in by instructor
RatioFormula (express the ratio in words)Detailed calculation (actual numbers from financial statements used for the calculation)Final number (final result of the detailed calculation)Explanation of why ratio is importantEarned points (up to 3 points per "box"/cell)Instructor feedback Example: Term A/Term B (Term A divided by Term B)1000 / 20000.5This is the explanation of the role of this ratio and why it is important3 Efficiency Ratio: Receivables TurnoverNet Sales ÷ Accounts Receivable50,000,000 ÷ 33,000,0001.52This ratio shows the company how quickly accounts receivable are paid. A high turnover generally means more cash on hand for the company. Grade for above0.0

Efficiency Ratio: Inventory TurnoverCost of Goods Sold ÷ Average Inventory9,000,000 ÷ 32,000,0000.28This ratio shows how often the inventory sells and needs to be restocked which is important in determining accurate merchandising scheduling and helps prevent under or overstocking of the product. Grade for above0.0

Financial Leverage Ratio: Debt/Equity RatioTotal Liabilities ÷ Shareholders Equity94,900,000 ÷ 141,000,0000.67This ratio shows how financially stable a company is. It shows the relationship between the invested capital and the credit available. The final number will show if the company is poised to grow or is underachieving. Grade...