VII. Over to you

Look at the financial statements of a company you are interested in and calculate the company’s Z-Score. Is it in good financial health?

VIII. Test your English

A) Match the type of ratio (a-e) with the correct description of its

function (1-5)

1. shows how well the business can meet its commitments as they fall due	a. capital structure
2. shows how successfully he business is trading	b. liquidity
3. shows how well the business is using its assets	c. investment
4. provides information about how the capital structure of the firm is affecting the cost of capital and the return to shareholders	d. profitability
5. shows how the company’s performance is reflected in the market price of a share	i. use of assets

B) Which type of ratio are the following? Choose from a-e above

1. current ratio ______

2. price earnings ratio ______

3. fixed assets/net worth ______

4. asset/sales ______

5. acid test ratio ______

6. gross profit/sales ______

7. dividend cover for ordinary shares ______

8. borrowing/net worth ______

9. collection period for debtors ______

10.net profit after tax/sales ______

Key: 36 Ratios 2

Теxt 3.7 cost accounting

1. Practice the pronunciation of the following words

calculating, particular, manufacturing, wages, overheads, identified, processes, lighting, heating, maintenance, canteen, differentiate, variable, proportion, allocating, Absorption, design, volume, generate, separately do a breakeven, analysis, various, accomplish, maximizing.