Draft Day – Everyday Moola

Please find attached my Assignment 1 draft.

The ratios are still a work in progress but there are some to review. Was anyone else not able to find the number of shares their company has on issue?

This assignment is a mish-mash of blog posts and different sections were filled in at different times. If you find bits are repetitive or not put well together please let me know. I look forward to your review and feedback!

Assignment-1-Stage-3-5 Download

EOS-Company-Spreadsheet-2-1 Download

7 thoughts on “Draft Day”

Kym, I really appreciate your work! I think the detail you have provided is great and gives so much insight into your company. It shows that you’ve really researched your company to determine and understand their financial statements to really find out whats going on. This has pushed my to read further into my company’s annual reports.

I was also surprised to be on your favourite blogs! You are also one of my favourite.

I have a question in regards to your ratios – in relation to the liquidity ratios mine originally were shown as whole figures (eg. 1, 2) like yours, however, on another spreadsheet I noticed they had decimal places. Do you believe whole numbers are correct as this was how I assume the spreadsheet was formatted to do this?

Hi Kadiesha,
In regards to the liquidity ratios, I also assumed the spreadsheet was formatted to whole numbers. It seems to make more sense for these ratios because they measure how many times something covers something else. So 1.4 is not so different to 1 in these cases.
If the current ratio is 1 or higher it shows the company can cover all its short term liabilities from its short term assets.
A quick ratio of 1 is also common and shows a company can pay off its short term liabilities without selling inventory or getting extra funding. I don’t think a quick ratio of say 1.6 would say much more than 1 for what we are trying to work out for liquidity.