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ACCounting WEEK 4

Analyzing Profitability –

From the textbook – Financial Analysis with Microsoft Excel

Read Chapter 3

Review PPT Chapter 3. ***ATTACHED

Using your financial statements from Southwest Airlines in Week 2, calculate the  following ratios : ***ATTACHED (Professor comments to fix it: For your internet exercise, you need to follow the rules for Common Sized statements – also referred to as a vertical analysis. You need to make the sales = to 100% and it will be the denominator to everything on the income statement. Total Assets will be the denominator on the balance sheet.) 

Gross Profit Margin, Operating Profit Margin, Current Ratio,

From the Red Company Software Materials –

Drilling down into the Dupont Analysis

Read Red Company Chapter 4 pages 35-57. ***ATTACHED

Watch the videos at the Red Company website on the Dupont Analysis (04A, 04B, 04C)

URL: https://www.youtube.com/watch?v=qRBHfpyTDU8

Complete Homework EX 4-1 through 4-10

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