Description Part #1 Write a response to the following in a minimum of 500 words: Financial statem ...

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Description Part #1 Write a response to the following in a minimum of 500 words: Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported. Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category. For each of the 3 ratios you selected, describe how it is used in managerial decision-making. Part #2 Write a response to the following in a minimum of 500 words: Managers can choose from several analytical techniques to help them make capital investment decisions. Each technique has advantages and disadvantages. Distinguish between the 3 capital investment techniques of: Net Present Value Internal Rate of Return Payback Method Describe what you consider to be the top 2 advantages and 2 disadvantages of each technique and provide an example to support your top advantage of each method. Part #3 Business Applications Case As you learned in this module’s practice assignment (Practice: Ratio Analysis), many different calculations need to be completed to assist an organization with its financial statements. Write a 250-word response reflecting on your experience making the calculations from the practice assignment. In your reflection, share your thoughts on the activities within this module’s readings. Consider how calculating financial statements will help drive effective business decisions. Answer the following questions within your response: Which calculations were challenging for you? Why? Which ratios were difficult to understand? What will you do differently in the following modules? If you did not have any challenges, respond to the following questions: What prepared you for these calculations? What advice would you give a classmate who needs assistance? Part #4 Net Present Value and Internal Rate of Return Review the scenario and complete the activity that follows. This scenario can also be found in the “Problems – Series A” section 10-19A of Ch. 10, “Planning for Capital Investments” of Fundamental Managerial Accounting Concepts. Dwight Donovan, the president of Donovan Enterprises, is considering 2 investment opportunities. Because of limited resources, he will be able to invest in only 1 of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of 4 years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $400,000 and for Project B are $160,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B. Both investments are expected to provide cash flow benefits for the next 4 years. Donovan Enterprises’ desired rate of return is 8%. Your task as Senior Accountant is to use your knowledge of net present value and internal rate of return to identify the preferred method and best investment opportunity for the company and present your results to Dwight Donovan. Use Excel®—showing all work and formulas—to compute the following: The net present value of each project. Round your computations to 2 decimal points. The approximate internal rate of return for each project. Round your rates to 6 decimal points.