Project 2

Project 2 - ACCT212 Project 2 Financial Statement...

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ACCT212 Project 2: Financial Statement Analysis-Pier 1 Imports, Inc. Due Date: The project is due by the end of Week 7. Requirements: Financial Ratio Calculations* 1. Current ratio 2. Acid-test ratio 3. Inventory turnover 4. Accounts Receivable turnover 5. Average Collection Period (Days’ sales in receivables) 1. Debt ratio 2. Times-interest-earned ratio 1. Gross Profit Rate 2. Rate of return on net sales (Profit Margin rate) 3. Rate of return on total assets 4. Rate of return on common stockholders’ equity 5. Earnings per share of common stock 6. Price/earnings ratio 7. Dividend Yield 8. Book value per share of common stock Due by Sunday, end of Week 7, 11:59 P.M. (MT) - 75 points Description : Using the financial statements for Pier 1 Imports, Inc. located in Appendix B of your Textbook, you will calculate Ve r the financial ratios listed below for the year ended in 2006. A written analysis is also required and should be prepared Grade Weight: (75 points ) The financial statement analysis project will count for 7.5% of your overall course grade. The Worksheets contained i n completing Requirements 1 and 2 for submission. 1 . Complete the Excel Spreadsheet in this Workbook labeled Horizontal & Vertical. i c 2 . Complete the Excel Spreadsheet in this Workbook labeled Ratios. Show your computations and the formulas for t h 3 . In Word, write a minimum of two and a maximum of three pages to evaluate Pier 1 Imports, Inc. for a) Liquidity, b In your two to three-page written analysis, be sure to compare Pier 1 Imports, Inc. results to the Industry Average rati o to state how d) an investor might judge Pier 1 Imports, Inc. As well as how e) a creditor might judge Pier 1 Imports , an investor, would you invest in Pier 1 Imports, Inc.? If you were a creditor, would you loan money to Pier 1 Imports organized into sections with appropriate headings to make it clear that you have addressed each of the questions and t o analysis (judgments) with the numbers/data that you presented in your worksheets. Please upload your two files ( o the Drop box by the end of Week 7. A. Liquidity Ratio B. Solvency Ratios C. Profitability Ratios

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**Note that for the purposes of this project "Net Income (Loss) from Continuing Operations" in the Income Statement is being u s This is to keep some items from becoming too complicated and the fact that this course does not cover the chapter concerning *Note: If you are unable to locate an item needed for a ratio, make an assumption and make sure you note your assum p
Due: End of Sunday, Week #7 PROJECT #2-HORIZONTAL AND VERTICAL ANALYSIS-SOLUTION Horizontal Horizontal Pier 1 Imports, Inc.-Consolidated Statements of Operations

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This note was uploaded on 11/23/2009 for the course ACCT 212 taught by Professor Partridge during the Summer '09 term at DeVry Cincinnati.

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Project 2 - ACCT212 Project 2 Financial Statement...

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