This assignment is based on the computations and exhibits shown earlier that are based on Wendy’s financial statements. In each case, refer to the relevant exhibits and review the results.

Required

a. Review the horizontal and vertical analyses of Wendy’s income statement for 1997 and 1996 (step 5 of the financial statement analysis framework).

b. Review the results of Wendy’s liquidity analysis for 1997 and 1996 (step 6 of the financial statement analysis framework).

c. Review the results of Wendy’s profitability analysis for 1997 and 1996 (step 7 of the financial statement analysis framework.

d. Review the results of Wendy’s capital structure analysis for 1997 and 1996

(step 8 of the financial statement analysis framework).

e. Review Wendy’s investor ratios for 1997 and 1996 (step 9 of the financial statement analysis framework).

f. Conduct step 10 of the financial analysis framework, as may be necessary.

Recalculate, as necessary, any ratios that could be restated based on new information found in the notes.

g. On the basis of these results, evaluate the various dimensions of Wendy’s performance in 1997 and 1996. How do any restatements in the previous step change your conclusions about Wendy’s profitability? Identify any additional information needed before making an investment in Wendy’s.