Obtain the most recent annual report or SEC filing 10-K of a publicly traded company that interests you.

It may be a local company or it may be a company in an industry that you would like to know more about.

Using the annual report, compute as many of the financial ratios covered in this chapter as you can for at least the past two years. This may pose some difficulties—particularly because companies often use different terms for many income statement and balance sheet items than were shown in the chapter. Nevertheless, do the best that you can. After you have computed the financial ratios, summarize the company’s performance for the current year. Has it improved, gotten worse, or remained about the same? Do the ratios indicate any potential problems or any areas that have shown significant improvement? What recommendations, if any, would you make to a bank about extending short-term credit to this company? What recommendations, if any, would you make to an insurance company about extending long-term credit to this company? What recommendations, if any, would you make to an investor about buying or selling this company’s stock?