Critelli Company has provided the following comparative information: You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: Instructions 1. Prepare three line graphs, with the ratio on the vertical axis and the years on the horizontal axis for the following three ratios (rounded to one decimal place): a. Rate earned on total assets b. Rate earned on stockholders’ equity c. Number of times interest charges earned Display both the company ratio and the industry benchmark on each graph. That is, each graph should have two lines. 2. Prepare an analysis of the graphs in (1)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Critelli Company has provided the following comparative information:

You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:

Instructions

1. Prepare three line graphs, with the ratio on the vertical axis and the years on the horizontal axis for the following three ratios (rounded to one decimal place):

a. Rate earned on total assets

b. Rate earned on stockholders’ equity

c. Number of times interest charges earned

Display both the company ratio and the industry benchmark on each graph.

That is, each graph should have two lines.

2. Prepare an analysis of the graphs in (1)

 

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