Ratio: Company and Year: Numerator: Denominator: Answer: What does it mean? Good/Bad? Better/Worse? Current ratio Facebook 12/31/2021 CA/CL Facebook 12/31/2020 Twitter 12/31/2021 Twitter 12/31/2020 Gross profit margin Facebook 12/31/2021 GP/S Facebook 12/31/2020 (S-CGS)/S Twitter 12/31/2021 Twitter 12/31/2020 Return on Equity Facebook 12/31/2021 NI / Avge SE Facebook 12/31/2020 Twitter 12/31/2021 Twitter 12/31/2020 Return on Assets Facebook 12/31/2021 NI / Avge TA Facebook 12/31/2020 Twitter 12/31/2021 Twitter 12/31/2020 Accounts Rec. turnover Facebook 12/31/2021 S / Avge Acc Rec Facebook 12/31/2020 Twitter 12/31/2021 Twitter 12/31/2020 Debt-to-equity ratio Facebook 12/31/2021 TL / TEQ Facebook 12/31/2020 Twitter 12/31/2021 witter 12/31/2020 Market price Year-end market closing date Facebook Twitter What does it mean? Good/Bad? Better/Worse? 12/31/20 12/31/20 12/27/19 12/28/18 12/29/17Question series #1 (about the numbers): A) Why does Facebook appear as smaller amounts than Twitter, such as 2021 Facebook current assets 66666 vs 2021 Twitter current assets 7918370? B) What is the difference between revenue or sales revenue or sales or service revenue? C) Why do these companies have Accounts Receivable/Who are the customers of Facebook/Who owes money to Facebook and Twitter? D) How is it possible that Facebook has strong income amounts but Twitter has net losses? A Amounts B Revenue C Receivables D Income vs LossQuestion series #2 (about the 10-K reports): A) What is a 10-K report? B) Describe the section of the 10-K report BEFORE the financial statements. C) Name the 5 financial statements included in the 10-K report for Facebook and Twitter. D) Describe the section of the 10-K report AFTER the financial statements. A What is it? B Before C List of F/S D AfterQuestion series #3 (closing remarks): A) Prepare a closing statement about Facebook and what you learned through your research and analysis. If you were going to select one of these two corporations to invest in and if your choice is Facebook, describe 3 reasons why you would select Facebook. B) Prepare a closing statement about Twitter. If you were to select Twitter, describe 3 reasons why you would select Twitter. A) Facebook B) TwitterWhat are the project requirements? Items 1-6: Using the 10-K Forms provided in worksheet #4 of this Excel file, complete selected Possible financial ratio analysis calculations on 2 companies for 2 years Points 1) Liquidity analysis - Current Ratio 4 2) Profitability analysis - Gross Profit Margin 4 3) Profitability analysis - Return on Equity 4) Profitability analysis - Return on Assets 5) Operations analysis - Accounts Receivable Turnover A 6) Solvency analysis - Debt to Equity Ratio Item 7: Using the internet, research the historical stock prices for the 2 companies 7) Complete the table presenting the 5 most recent year-end market prices for each company. 4 Items 8-10: Complete question series 1, 2 and 3 to the best of your ability and edit your writing 8) A series of 4 questions about the numbers you use in your ratio calculations 4 9) A series of 4 questions about the 10-K reports 10) 2 closing questions about Facebook and Twitter A Total possible points 40
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