Lakeside Case Exercise Template Essay

(a) Compute the financial ratios listed in register 3-2 for lakeside for the years ended December 31, 2010 and December 31, 2011. tittle-tattle on any large fluctuations, unusual fluctuations, or lack of evaluate fluctuations. Also, knock over an overall conclusion as to the significance of the change in lakeshores liquidity, solvency, and profitability positions from 2010 to 2011. habituate the following initialise. Use Case3.xls for a spreadsheet to compute the ratios. proportionality20102011Significance of Change contemporary1.351.35No significant fluctuation, indicating a stalls liquidity position (based on this measure of liquidity) clean Days stocktaking on HandAverage Days to dupe ReceivablesDebt-to-Total Assets Ratio generation Interest EarnedProfit Margin die on Assets double back on EquityOverall Conclusion(b)Compare the year 2011 financial ratios computed for Lakeside above to the industry average ratios included in Exhibit 3-3. Comment on any large fluctuations, unusual fluctuations, or lack of judge fluctuations. Also, give an overall conclusion as to the significance of the difference amid Lakesides liquidity, solvency, and profitability positions in 2011 and the industry average positions. Use the following format.RatioIndustry Ave.Lakeside 2011Significance of ChangeCurrent2.161.35Lakeside is below the industry average. This may indicate short-term solvency problemsAverage Days Inventory on HandAverage Days to Collect ReceivablesDebt-to-Total Assets RatioTimes Interest EarnedProfit MarginReturn on AssetsReturn on EquityOverall Conclusion(c) conk out all(prenominal) of the financial statements and the trial rest periods included in Exhibits 3-4 through 3-7. Comment on any unusual accounts, account balances, or large, unusual, or lack of expected fluctuations from the previous year. You should find at least 10 items. Note you may necessitate more than one finding for each procedure. Use the following formatProcedureFindingsSignifican ceScan the trial balance.1. A debit balance appears in the Allowance for Doubtful Accounts account. 2.1. Bad accounts may be change magnitude or a debit entry may have been misposted. 2.Scan the income statement.Scan the balance sheet.Scan the statement of cash flows.