ACCT 212 Course Project 2 Week 7

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ACCT 212 Course Project 2 Week 7 

Top managers of O’Hare Products, Inc., have asked for your help in comparing the company’s profit performance and financial position with the average for the industry. The accountant has given you the company’s income statement and balance sheet and also the following data for the industry.  The problem is that O’Hare is in dollars and the Industry Average is in percentages.  To complete the analysis you will need to convert O’Hare’s dollar amounts to percentages.

Prepare a common-size income statement and balance sheet for O’Hare Products. The first column of each statement should present O’Hare Products’ common-size statement, and the second column should show the industry averages.

For the profitability analysis, compare O’Hare Products’ (a) ratio of gross profit to net sales, (b) ratio of operating income to net sales, and (c) ratio of net income to net sales with the industry averages. Is O’Hare Products’ profit performance better or worse than the average for the industry?

 

For the analysis of financial position, compute O’Hare Products’ (a) ratios of current assets and current liabilities to total assets and (b) ratio of stockholders’ equity to total assets. Compare these ratios with the industry averages. Is O’Hare Products’ financial position better or worse than the average for the industry?

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ACCT 212 Course Project 2 Week 7 ,

ACCT 212 Week 7 Course Project 2 McDonough Products
Course Project 2 consists of Problem 13-52A from your textbook. At the end of Course Project 2, you will be able to prepare common-size statements, analyze profitability; and make comparisons with the industry. Course Project 2 is due at the end of Week 7.
1. Download the Excel template named ACCT212_CourseProject2 located on the Doc Sharing tab in the course shell.
2. To complete Course Project 2 (due at the end of Week 7):

  • Using the requirements worksheet for reference, complete requirements 1-3 on the Your Solution worksheet.
  • Type your work directly into the worksheet.
  • Save your workbook as “CourseProject2_ACCT212_YourLastName”.

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