The first step is to compute the beginning and ending balances of NOA.
|
|
2008 |
2007 |
|
Total assets |
$31,670 |
$27,745 |
|
Cash |
(1,230) |
(1,805) |
|
Operating assets |
$30,440 |
$25,940 |
|
|
|
|
|
Total liabilities |
$27,166 |
$24,295 |
|
Current portion of long-term debt |
(3,306) |
(3,095) |
|
Long-term debt |
(22,000) |
(20,000) |
|
Operating liabilities |
$1,860 |
$1,200 |
|
|
|
|
|
Net operating assets |
$28,580 |
$24,740 |
Next, calculate the average NOA for 2008 of $26,660 [($28,580 ROAEND + $24,740 NOABEG) / 2].
Finally, calculate the accruals ratio for 2008: ($28,580 NOAEND − $24,740 NOABEG) / $26,660 NOAAVG = 14.4% |
