Question
Choose a company that you are considering investing in and/or lend money to. As an accounting expert, you refer to the annual report to answer
Choose a company that you are considering investing in and/or lend money to. As an accounting expert, you refer to the annual report to answer the following questions:
a) Compute for 2020and 2019the(1) profit margin, (2) asset turnover, (3) return on assets and (4) return on common stockholders’ equity. How would you evaluate the company’s profitability?
b) Compute for 2020and 2019the (1) current ratio and (2) working capital. How would you evaluate the company’s liquidity?
c) Compute for 2020and 2019the (1) debt to total assets and (2) times interest earned ratio. How would you evaluate the company’s long-term solvency?
d) Does the company have any 2020Pensions or Other Post retirement Benefits? If so, list the amount and breakdown from the disclosure notes.
e) Does the company disclose any Contingencies in their 2020disclosure notes?
f) What were the earnings per share(basic and fully diluted) for the fiscal years ended 2020, 2019, 2018?
g) What countries does your company operate within? What is the primary country of its operations? What issues related to international accounting (Non-US GAAP) are mentioned in the annual report?
h) How does your company address Corporate Social Responsibility? What is your company’s primary focus in regards to Corporate Social Responsibility? Please provide three examples of how your company participates in Corporate Social Responsibility.
i) Would you invest in or lend money to this company? Why or why not?
** Please, include formulas and show work **
What details are missing? I cant ad all the screens the system will not let me.
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