Saturday, May 18, 2019
Analytical Proceduresââ¬Ratio Analysis Form
11 ANALYTICAL PROCEDURESRATIO compendium FORM The auditor can use this form to document the performance and evaluation of proportion analytic thinking in connection with analytical procedures performed in an audit. The form is only a guide and is not a substitute for professional judgment. The form may be modified by adding or omitting certain symmetry analysis. CLIENT NAME DATE OF FINANCIAL STATEMENTS LIQUIDITY RATIOS 20__20__19__19__ 1. Current ratio = Current Assets Current Liabilities____________________ Comments 20__20__19__19__ 2. sprightly or acid test ratio =Current Assets account Current Liabilities____________________ Comments PROFITABILITY RATIOS 20__20__19__19__ 1. Gross reach ratio = Net Sales Cost of Goods Sold Net Sales____________________ Comments 20__20__19__19__ 2. Operating margin ratio = Income beforehand Income Taxes and Interest Net Sales____________________ Comments 20__20__19__19__ 3. Net income ratio (or profit margin ratio) = Net Income Net Sales___ _________________ Comments 20__20__19__19__ 4. Return on total assets ratio = Net Income + Interest Expense Total Assets____________________Comments 20__20__19__19__ 5. Return on equity ratio = Net Income Average stockholders Equity____________________ Comments LEVERAGE RATIOS 20__20__19__19__ 1. Debt to assets ratio = Total Debt Total Assets____________________ Comments 20__20__19__19__ 2. Debt to equity ratio = Long-Term Debt Stockholders Equity____________________ Comments 20__20__19__19__ 3. Times interest earned ratio = Income before Income Taxes and Interest Interest Expense____________________ Comments ACTIVITY RATIOS 20__20__19__19__ 1. Inventory turnover =Cost of Goods Sold Average Inventory____________________ Comments 20__20__19__19__ 2. Average age of inventory = 360 Days Inventory Turnover____________________ Comments 20__20__19__19__ 3. Accounts receivable turnover = Net Sales Average Accounts receivable____________________ Comments 20__20__19__19__ 4. Days sales in ac counts receivable = 360 Days Accounts Receivable Turnover____________________ Comments 20__20__19__19__ 5. Asset turnover = Net Sales Total Assets____________________ Comments Prepared by Date Approved by Date
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