. Analyze financial statements

a) "What four financial statements are contained in most annual reports?"

b) "Who are some of the basic users of financial statements,and how do they use them?"

Selecttwopubliclytraded companies of your choice(both competitors of each other).

Review the financial statements of the companies.

Note:for the following questions,you must provide detailed financial information per the financial statements

[The financial statements of most companies can be found at Yahoo Finance.For instance,view the financial statements of Knight Transportation here:Knight Transportation

(Links to an external site.)

Links to an external site.

]

c) Looking at the most recent year available,what is the amount of total assets on the companies' balance sheets?Whatpercentageis fixed assets,such as plant and equipment per total assets? Whatpercentageis current assets per total assets?

d) What amount doyour companies have inlong-termdebt?Whatpercentage is long-term debtper total debt and equity?

e) Looking at the income statement,what are your companies' most recent salesand net income?

f) From what means(major sales channels)do they earn their revenues?

2.Profit Margin Analysis

a) For your companies,calculatethe following profit margins:Gross Profit Margin, Operating Profit Margin and Net Profit Margin.

b) What is the difference between each of the types of margin ?

c) Compare the companies margins performance. Why may the company be doing better than the otherper each specificmargin?