Bus 5110 Managerial Accounting - Portfolio Activity Unit 7

UNIVERSITY OF THE PEOPLE MASTERS IN BUSINESS ADMINISTRATION (MBA) BUS 5110: MANAGERIAL ACCOUNTING PORTFOLIO ACTIVITY UNIT 7 The Financial Ratios for Apple Business Inc DR JACENT GAYLE DECEMBER 20211 | P a g e Organizations dealing with the production and merchandising of products must generate financial statements at the end of each year. Financial ratio assessment uses the values found in these statements, like, income statement, balance sheet, and the cash flow statement, to attain an estimation of the organizations financial health (Heisinger & Hoyle, n.d.). Besides, all manufacturing and merchandising organizations are appraised using the same financial analysis tools even though some ratios are irrelevant to their everyday operations. Appreciating these ratios and how they affect your financial statements is significant to determine the ones that can be employed based on your type of organization. The Ratio Analysis is used to determine profitability, temporary and lasting liquidity, as well as the assessment of the marketplace (Heisinger & Hoyle, n.d.). Organizations like Apple Business Inc have the capability of determining their productivity ratios because they are dependent on sales volume, total income, total assets, total liabilities, as well as owners equity. Such are values established in the income statement and