Analyse the WorldCom Consolidated Balance Sheet and Consolidated Statement of Operations1 for FY20 01 using the analytical methods below and discuss any material red flags identified by each analytical method. Please show all calculations. The analytical methods are:

Ratio Analysis (justify and select five key ratios only to perform your ratio analysis)

Correctly identifies and analyzes five key ratios for 2001.

Balance Sheets

WEE- 39,090 - line lCost 14,739 15,462 Selling, general and administrative Depreciation and amortization 5,830 4,8?3 1,002 20.54% Other charges -723 4.68% 1 1,045 449 4.24% a W HI 10,597 72 4,53 31,66 3,51 30.93 3,15 2.35% Operating income 66.90% Other Income [expense] nterest expense Miscellaneous income before Income Taxes, minority interests and cumulative effect of h U1 NW -1,5 -9 -55 58.04% 7.01% h H " 3' 458.38% 93696 accounting change 2,393 7,563 -5,175 Provision for income taxes 9 :ncome Before minority M g 3,025 -2 098 n. interests and cumulative effect of accounting changes 1.466 Minority Interest Income before cumulative effect of accounting change 1,501 Cumulative effect of accounting change [net of income tax $50 in 2000} 85 400.00% Net Income before Distribution on mandatory redeemable preferred 453.86% Distribution on mandatory redeemable preferred securities 8: other preferred dividend requirements 117 52 30.00% -s1sim 4,543 3.07? 45173 % 411.48% 4,233 4,731 64.58% in N