Written Assignment Unit 7
Case Study:
You work in the mergers and acquisitions department of a large conglomerate who is looking to invest in a retail
business. Two companies, Fashion Forward and Dream Designs, are the final two options being considered. You
have the most recent available income statements and two years of balance sheets for each company.
Compute the following ratios for each company:
Profit Margin Ratio
Return on Assets
Current Ratio
Quick Ratio
AR Turnover Ratio
Average Collection Period
Inventory Turnover Ratio
Average Sales Period
Debt to Equity Ratio
For this assignment:
Compute all required amounts and explain how the computations were performed
m
er as
Evaluate the results for each company and explain what each ratio means
co
Compare and contrast the companies.
eH w
Based on your analysis:
o recommend which company the organization should pursue
o.
rs e
o Thoroughly support your conclusion, including what other factors should be considered
ou urc
o Be specific.
Superior papers will:
o
Perform all calculations correctly.
aC s
Articulate how the calculations were performed.
vi y re
Evaluate the ratios computed and explain the meaning of the ratios.
Compare the companies.
Recommend which company to pursue, supported by well-thought-out rationale and considering any other
ed d
factors that could impact the recommendation.
ar stu
Be sure to use APA formatting in your paper. Purdue University’s Online Writing LAB (OWL) is a free website that
provides excellent information and resources for understanding and using the APA format and style. The OWL
website can be accessed here: http://owl.english.purdue.edu/owl/resource/560/01/
is
This paper will be assessed using the BUS 5110 Unit 7 Written Assignment rubric.
Th
sh
This study source was downloaded by 100000816532462 from CourseHero.com on 05-26-2021 03:53:55 GMT -05:00
1
https://www.coursehero.com/file/67499900/Written-Assignment-Unit-7pdf/
, Written Assignment Unit 7
m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh
This study source was downloaded by 100000816532462 from CourseHero.com on 05-26-2021 03:53:55 GMT -05:00
2
https://www.coursehero.com/file/67499900/Written-Assignment-Unit-7pdf/
Case Study:
You work in the mergers and acquisitions department of a large conglomerate who is looking to invest in a retail
business. Two companies, Fashion Forward and Dream Designs, are the final two options being considered. You
have the most recent available income statements and two years of balance sheets for each company.
Compute the following ratios for each company:
Profit Margin Ratio
Return on Assets
Current Ratio
Quick Ratio
AR Turnover Ratio
Average Collection Period
Inventory Turnover Ratio
Average Sales Period
Debt to Equity Ratio
For this assignment:
Compute all required amounts and explain how the computations were performed
m
er as
Evaluate the results for each company and explain what each ratio means
co
Compare and contrast the companies.
eH w
Based on your analysis:
o recommend which company the organization should pursue
o.
rs e
o Thoroughly support your conclusion, including what other factors should be considered
ou urc
o Be specific.
Superior papers will:
o
Perform all calculations correctly.
aC s
Articulate how the calculations were performed.
vi y re
Evaluate the ratios computed and explain the meaning of the ratios.
Compare the companies.
Recommend which company to pursue, supported by well-thought-out rationale and considering any other
ed d
factors that could impact the recommendation.
ar stu
Be sure to use APA formatting in your paper. Purdue University’s Online Writing LAB (OWL) is a free website that
provides excellent information and resources for understanding and using the APA format and style. The OWL
website can be accessed here: http://owl.english.purdue.edu/owl/resource/560/01/
is
This paper will be assessed using the BUS 5110 Unit 7 Written Assignment rubric.
Th
sh
This study source was downloaded by 100000816532462 from CourseHero.com on 05-26-2021 03:53:55 GMT -05:00
1
https://www.coursehero.com/file/67499900/Written-Assignment-Unit-7pdf/
, Written Assignment Unit 7
m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh
This study source was downloaded by 100000816532462 from CourseHero.com on 05-26-2021 03:53:55 GMT -05:00
2
https://www.coursehero.com/file/67499900/Written-Assignment-Unit-7pdf/
