7.5 Ratio Analysis Exercise
You are given the balance sheet and income statements for ABC Corporation. Notice the balance sheet is not presented side-by-side. Calculate each of the 20 financial ratios provided above for “This Year” on the next page. Remember to “average” in the appropriate places. No company description or footnotes accompany the statements. You will note that this company has preferred stock, thus complicating certain ratio calculations. Instructions regarding adjustments for Preferred Stock are found in Section 7.8 below.