Obtain the annual reports of as many companies as you have team membersone company per team member.

Question:

Obtain the annual reports of as many companies as you have team members—one company per team member. Most companies post their financial statements on their websites.

Requirements

1. Identify the inventory method used by each company.

2. Compute each company’s gross profit percentage, inventory turnover, and days’ sales in inventory for the most recent two years.

3. For the industries of the companies you are analyzing, obtain the industry averages for gross profit percentage and inventory turnover from Robert Morris Associates, Annual Statement Studies; Dun and Bradstreet, Industry Norms and Key Business Ratios; or Leo Troy, Almanac of Business and Industrial Financial Ratios.

4. How well does each of your companies compare with the average for its industry? What insight about your companies can you glean from these ratios?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...