Financial Statements

I need help with a Accounting question. All explanations and answers will be used to help me learn.

This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability.

Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company’s founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios. Summary information provided by TRI Document presented below.

TRI Documents

Please note the amount for Year 1 for the debt to equity ratio should be 0.86 instead of 1.02. Thanks

Required:

a. Calculate the select financial ratios for the fiscal year Year 2. (use MS word or excel but excel is more recommended)

b. Interpret what each of these financial ratios means in terms of TRI’s financial stability and operating efficiency.

Please make sure to include a title page and reference page formatted using APA guidelines with ALL assignments. Points will be deducted if they are not included. If submitting assignments multiple times, please identify which assignment needs to be graded otherwise the last assignment submitted will be graded. Also, pay close attention to the plagiarism risk percentage provided by the Safe Assign feature once your assignment is submitted. Assignments with excessively high plagiarism risks will be given a zero and you will be asked to rewrite the assignment. If this occurs more than once, you will be reported to the University.

Let me know if you have any questions. Thanks

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