DQ 1.Last week we discussed how different stakeholders (managers, investors, lenders, public) use financial statements. This week we will focus on financial ratios. Do you believe some ratios (solvency, profitability, liquidity) are more relevant to some stakeholders? Would you expect other groups such as vendors or clients to use the ratios as well?
DQ 2.What factors would you consider when comparing the ratios of two companies? How can we make financial ratio comparisons a more successful process?
WileyPLUS Assignment Week 2 Practice Quiz
Complete the Week 2 Practice Quiz in WileyPLUS.
Individual Assignment Ratio Analysis Assignment
Please go to Yahoo Finance (finance.yahoo.com).
Under the "Quote Lookup" please search for Kellogg Company.
On the left bar you will be able to access the Income Statement and
Balance Sheet for the company.
Calculate the current ratio, profit margin and debt/equity ratio. Explain your interpretation of each.
Prepare a 500-word paper that responds to the following questions (please use a question / answer format):
1. Has the profit increased or decreased from 2012 to 2013 and by how much?
2. What is the percentage increase or decrease in selling general and administrative expenses?
3. What is the percentage increase or decrease in net income?
4. Based on your answers above, what conclusion can you draw regarding the firm's financial performance?
Individual Assignment Financial Statement Review
1. Select an American corporation.
2. Visit its website and download the Income Statement, Statement of Stockholders Equity, Balance Sheet, and Statement of Cash Flows.
3. Complete the University of Phoenix Material: Financial Statement Review Worksheet.
4. Submit the completed worksheet, copies of the downloaded financial statements, and a link to the website. Include all your calculations if applicable.
5. Click the Assignment Files tab to submit your assignment.