Jones Electrical Distribution (access here the Supplemental Spreadsheet for Exhibits)
You have recently covered important accounting concepts during the past module. Let’s remember some of the ratios you covered or, in the absence of this coverage, let’s do a “warm-up” exercise of the ratios that we will cover soon (see textbook preparation material for Class 1). In the “Jones ex-ante handout 1” excel filePreview the document, you will observe the first sheet titled 1. Historical Ratios. The top area (in yellow) contains Jones’ historical financial statements, while the lower area (in brown) contains a list of several ratios that I am asking you to calculate. Please do the following:
Fill-in the empty boxes with the necessary calculation inputs in the brown area using the 2004 and 2006 information from the financial statements.The ratio value itself (your answer) should be calculated in the cells that are color-coded green.As you work on these ratios, try to remember or think about the way each of them can be interpreted.Lastly, you will also notice that all the ratios that you calculate in the 1. Historical ratios sheet are also summarized in sheet 2. Ratio Summary for ease of comparison.Your individual assignment is to complete the ratios as best as you can and use the results to make your own individual assessment of Jones’ financial health.Your comments should be placed on the third sheet titled 3. Your Conclusions.Do your best to provide a thoughtful response based on your ex-ante readings and preparation as well as on past information. Please note that the box in sheet 3 can be expanded so its original size should not limit your response.
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