Overview
In this assignment, you will take your work with financial statements to the next level. You will analyze financial statements similar to those you created during the Week 4 assignment, the Income Statement and the Statement of Retained Earnings. Based on your analysis, you will evaluate the financial health of the company and recommend steps to improve it. You will submit a PowerPoint presentation; you may elect to record yourself delivering the presentation and submit the recording, too, if you choose.
Instructions
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Week 8 Assignment—Financial Statements [PDF]
. Examine them and then create a PowerPoint presentation of 5 slides, plus a title and a reference slide, about the following:
Vertical Analysis. Perform at least 4 vertical analysis tests on the financial statements with no errors.On the slide, name the vertical analysis tests you perform, and show the calculations and results. You must complete a minimum of 4 tests but doing more may help you better understand the condition of the company.Profitability Ratio Analysis. Perform at least 4 ratio analysis tests on the company’s profitability with no errors.On the slide, name the profitability ratios you perform, and show the calculations and results. You must complete a minimum of 4 tests but doing more helps you better understand the condition of the company.Organization Health. Assess the financial health of the organization based on appropriate interpretation of at least 6 of the vertical and ratio analysis tests you performed. Add speaker notes to this slide to provide explanation of your assessment of the organization’s financial health.Referring to at least 6 of the indicators you included on the Vertical Analysis and Profitability Ratio Analysis slides, assess the overall financial health of the organization. This slide shows what is going well for the company.
P. Bride Company
Income Statement
For the Year Ended December 31, 2025
(In thousands of U.S. dollars)
Sales revenue
$965,000
Cost of goods sold
$600,700
Gross profit (loss)
$364,300
Operating expenses:
Selling expenses
Sales commissions
$79,800
Depreciation of sales equipment
$64,800
Delivery expense
$26,900
Total selling expenses
$171,500
Administrative expenses
Officers’ salaries
$49,000
Depr of office furn. and equip.
$39,600
Total administrative expenses
Total selling and admin. expenses
Income from operations
$88,600
$260,100
$104,200
Other Income
Other revenues and gains:
Rent revenue
$17,230
Other expenses and losses:
Interest expense
Income before income tax
Income Tax
Net income
$18,600
$102,830.00
$22,622.60
$80,207.40
Income Statement for a Merchandising
Company
LO 5
Retained Earnings Statement for a
Merchandising Company
LO 5
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