Question 1: Assuming the role of Jolly Jeffers is to prepare a three page memorandum (plus any appendix you put in the actual to show calculations) that analysis the financial condition of Delisle Industries make recommendations on the company’s operational and financial problems and proposed expansion. The memo should be divided into sections that describe liquidity, asset management, long-term debt paying ability, profitability and recommendations.

Question 2: Prepare the following financial exhibits for 2006 through 2010:

Ratio Table.

Vertical analysis

Horizontal analysis (using index numbers) of income statements and balance sheets.

Cash Flow Statements (2007 to 2010).

A thorough analysis of rate of return on equity (ROE).


Note: use only year-end balances to calculate ratios. The web is full of formulas to calculate ratios – not all are the same…there is considerable variations.

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