Please go over an revise this paper to fit my professor feedback.
In their abstract paragraph, students are asked to do the following: â€œIn your opening paragraph, summarize the overall story of profitability and liquidity for your company. In other words, highlight the most important aspects of your report, including your major conclusionsâ€
Students should address specifics about this companyâ€™s ratio results based on their findings and also highlight any missing information/disclosures, or departures from GAAP.
Students should include a description of the key ratios and comment about why they are relevant to the companyâ€™s performance.
The Quick ratio and ROE are incorrect. You need to use only the quick assets in the numerator for the Quick ratio.
To calculate the ROE, you need an average of the two yearsâ€™ total equity in the denominator. Recall that there was a beginning common stock number provided in the trial balance. Also, notice that there were no beginning balances reported for the Wage expense and retained earnings in the unadjusted trial balance. Since there was no beginning balance in the Wage expense or retained earnings, and this is not the companyâ€™s first year in operation, you should comment about how the missing retained earnings may impact the ROE, and how the missing wage expense could impact the ratios that are calculated using the net income.