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Assume that you recently graduated and have just reported to work as an investment advisor at a Wall Street firm. You have been asked to

Assume that you recently graduated and have just reported to work as an investment advisor at a Wall Street firm. You have been asked to review the following income statement and balance sheet of one of the firms clients.

Your supervisor has developed the given set of questions for you to answer:

  1. Please select two stocks and determine their free cash flow from the most recent two years. (For example, you can go to finance.yahoo.com, enter MSFT into the search bar, then go to "Financials", you will see last five year data from "cash flows" link). What inference can you draw from the companies free cash flow? Please present your findings in a table.
  2. Using the information and formulas from your textbook, please prepare two financial ratios for each stock from the last two years (For example from MSFT, you can find fiscal years of 2021 and 2020 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year (two ratios for each category per year). What challenges, strengths, or weaknesses do you see for each company? Please present your findings in a table.

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