1. You were recently hired as a financial analyst at Warner Bros., in the entertainment industry. You are asked by your Senior Financial manager to undertake financial analysis and assess the leverage and profitability of the company and facilitate its comparison with Prime Video (Amazon). Use your critical thinking skills and answer the following questions: Assess the long-term solvency of the two companies from the income statement and the abstract of the balance sheet given below Which company is more solvent? From the income statement and the abstract of the balance sheet given below, which company is managing the capital that shareholders have invested in it in a better manner? As a financial analyst, which factors will you consider for forecasting profitability of a corporate? Identify the ratio that measures the operating efficiency of a business and the company that has higher profitability If a company does not want to dilute its control, which type of financing should be emphasized and how is shareholdersequity determined? 2. You may use tables, graphs, or pie charts to support your summary 3. Your individual response should be submitted through Brightspace (one file per person) to this submission folder 4. Add submission time and full date.

ACCOUNTING AND FINANCIAL STATEMENTS Assigniment Description ASSIGNMENT INSTRUCTIONS 1. You were recenilly hired as a financial analyst at Warner Bros, in the entertainment induntyy You are asked by your Sonior Financial manager to uncertake financial analysis and assess the leverage and prothablity of the compary and tacatate as cormpaciton with Prime Video (Amazon). Use your critical thirking skits and answer the following questions. - Asaess the longterm solvency of the two companies from the inoome statement and the abstract of the balance sheot green below Which company is more solvent? - From the income statement and the abatract of the balance sheot given bekw. which company is maraging the capital that sharehoiders have invested in it in a better manner? - Ass a financial analyst, which factors will you consider for forecasting peottabitsy of a corporate? - Identify the ratio that measures the operating efficiency of a business and the company that has highor profitabity - If a company does not want to diluse its control, which type of frnacing should be omphasized and how is shareholdern' equity determined? 2 You may use tables, graphs, or pie charts to support your summary. 3. Your individual response should be submitted through Brightspace (one file per person) to this submission folder 4. Add submission time and full date. \begin{tabular}{|l|l|} \hline Revenue & 69,570,000 \\ \hline Cost of Revenue & 42,018,000 \\ \hline Gross Profit & 27,552,000 \\ \hline Operating Expense & 15,701,000 \\ \hline Operating Income & 11,851,000 \\ \hline Interest Expense & 978,000 \\ \hline Taxes & 6,102,000 \\ \hline Net Income & 11,054,000 \\ \hline From the Balance Sheet & \\ \hline Common Stock & 93,000,000 \\ \hline Retained Earnings & 889,000 \\ \hline Prime Video (Amazon) Income Statement & 2022 \\ \hline Revenue & 20,156,447 \\ \hline Cost of Revenue & 12,440,213 \\ \hline Gross profit & 7,716,234 \\ \hline Operating Expense & 5,111,980 \\ \hline Operating Income & 2,604,254 \\ \hline Interest Expense & 488,878 \\ \hline Taxes & 195,315 \\ \hline Net Income & 2,115,760 \\ \hline From the Balance sheet & \\ \hline Shareholders" Equity & 1490 \\ \hline Retained Earnings & 19 \\ \hline \end{tabular} ACCOUNTING AND FINANCIAL STATEMENTS Assigniment Description ASSIGNMENT INSTRUCTIONS 1. You were recenilly hired as a financial analyst at Warner Bros, in the entertainment induntyy You are asked by your Sonior Financial manager to uncertake financial analysis and assess the leverage and prothablity of the compary and tacatate as cormpaciton with Prime Video (Amazon). Use your critical thirking skits and answer the following questions. - Asaess the longterm solvency of the two companies from the inoome statement and the abstract of the balance sheot green below Which company is more solvent? - From the income statement and the abatract of the balance sheot given bekw. which company is maraging the capital that sharehoiders have invested in it in a better manner? - Ass a financial analyst, which factors will you consider for forecasting peottabitsy of a corporate? - Identify the ratio that measures the operating efficiency of a business and the company that has highor profitabity - If a company does not want to diluse its control, which type of frnacing should be omphasized and how is shareholdern' equity determined? 2 You may use tables, graphs, or pie charts to support your summary. 3. Your individual response should be submitted through Brightspace (one file per person) to this submission folder 4. Add submission time and full date. \begin{tabular}{|l|l|} \hline Revenue & 69,570,000 \\ \hline Cost of Revenue & 42,018,000 \\ \hline Gross Profit & 27,552,000 \\ \hline Operating Expense & 15,701,000 \\ \hline Operating Income & 11,851,000 \\ \hline Interest Expense & 978,000 \\ \hline Taxes & 6,102,000 \\ \hline Net Income & 11,054,000 \\ \hline From the Balance Sheet & \\ \hline Common Stock & 93,000,000 \\ \hline Retained Earnings & 889,000 \\ \hline Prime Video (Amazon) Income Statement & 2022 \\ \hline Revenue & 20,156,447 \\ \hline Cost of Revenue & 12,440,213 \\ \hline Gross profit & 7,716,234 \\ \hline Operating Expense & 5,111,980 \\ \hline Operating Income & 2,604,254 \\ \hline Interest Expense & 488,878 \\ \hline Taxes & 195,315 \\ \hline Net Income & 2,115,760 \\ \hline From the Balance sheet & \\ \hline Shareholders" Equity & 1490 \\ \hline Retained Earnings & 19 \\ \hline \end{tabular}