1. Balance Sheet Issues

2. Question What problems are shown when analyzing the balance sheet? What liquidity ratios are a problem?

3. Assets

4. ASSETS

5. Liabilities

7. Liquidity Ratios

8. Implications/Conclusions Working capital is on a downward trend Long-term liabilities are more than working capital which is not recommended Both current ratio and quick ratio are below industry average X-Cal may be approaching a cash crunch which will prevent the company from meeting payables

9. Recommendations Increase profits Speed up AR cycle Dispose of old/unused fixed assets and retain cash proceeds Reduce short-term debt Analyzing your financial ratios (n.d.). Retrieved July 26, 2009, from http://va- interactive.com/inbusiness/editorial/finance/ibt/ratio_analysis.html#tophttp://va- interactive.com/inbusiness/editorial/finance/ibt/ratio_analysis.html#top Ramhood15. (2009, January 10). Financial ratios and meanings. Message posted to http://www.docstoc.com/docs/3476499/Financial-Ratios-and-Meanings-Liquidity- Ratios-Current-Ratio-Formula-Current http://www.docstoc.com/docs/3476499/Financial-Ratios-and-Meanings-Liquidity- Ratios-Current-Ratio-Formula-Current