Instructions for each section must be fully adhered to.
Section 1
Using the in information in the attached document labeled SECTION 1.
Access the information contained in Riordan Manufacturing, Inc. balance sheet and income statement to calculate the following:
- Liquidity ratios
- Current ratio
- Acid-test, or quick, ratio
- Receivables turnover
- Inventory turnover
- Profitability ratios
- Asset turnover
- Profit margin
- Return on assets
- Return on common stockholders’ equity
- Solvency ratios
- Debt to total assets
- Times interest earned
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
Write a 400- to 700-word memo to the CEO of Riordan Manufacturing, Inc. in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
- What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
- Which users may be interested in each type of ratio?
- What does the collected data reveal about the performance and position of the company?
Section 2
Identify situations that might lead to unethical practices and behavior in accounting.
Write a 400-word response to the following: Do you think the Sarbanes-Oxley Act has made a difference in the ethical behavior of companies regarding their financial accounting? Why or why not?
Must reference the attached article titled SECTION 2 and at least two others to support your position.
*****Each response must be consistent with APA guidelines complete with in-text citations as well as reference page. *****
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