Refer to Nestls consolidated financial statements in Appendix A (available on www.pearsonglobaleditions. com/Harrison). Requirements Use the consolidated

Refer to Nestlé’s consolidated financial statements in Appendix A (available on www.pearsonglobaleditions.

com/Harrison).

Requirements Use the consolidated financial statements and the data in Nestlé’s annual report (Appendix A) to evaluate the company’s comparative performance for 2016 versus 2015.

1. Does Nestlé appear to be improving or declining in the following dimensions?

a. The ability to pay its current liabilities

b. The ability to sell inventory and collect receivables

c. The ability to pay long-term debts

d. Profitability

e. The ability to generate cash flows

f. The potential of the company’s shares as a long-term investment. You may want to obtain Nestlé’s current share price to support your answer. (Challenge)

2. What is your opinion of the company’s outlook for the future? Would you buy the company’s share as an investment? Why or why not? (Challenge)