Financial Statement Analysis Company Selection: a. which company have you chosen for your financial statement analysis project, and why? What is its primary industry? Data Collection: a. how did you gather the financial statements and annual reports of the selected company for the past three fiscal years? b. Did you encounter any challenges in obtaining this data, and how did you overcome them? Financial Statement Preparation: a. Describe the steps you took to organize and format the financial statements (income statement, balance sheet, and cash flow statement) for analysis. b. Did you make any adjustments or reclassifications to the financial data? If so, why? Profitability Analysis: a. Calculate the net profit margin for each of the three years. What trends or patterns do you observe in the company's profitability? b. How does the company's profitability compare to its competitors in the same industry? Liquidity Analysis: a. Calculate the current ratio and quick ratio for each of the three years. Has the company's liquidity position improved or deteriorated over time? b. What are the implications of the liquidity ratios for the company's ability to meet its short-term obligations? Solvency Analysis: a. Calculate the debt-to-equity ratio for each of the three years. How has the company's leverage changed over time? b. Based on your analysis of the debt-to-equity ratio, what is your assessment of the company's long-term financial stability? Efficiency Analysis: a. Calculate the inventory turnover and accounts receivable turnover ratios for each of the three years. Have there been any significant changes in these ratios? b. What insights do these ratios provide about the company's operational efficiency and working capital management? Investment Analysis: a. Calculate the Price-to-Earnings (P/E) ratio for each of the three years. How does the market perceive the company's valuation over time? b. Would you recommend investing in the company's stock based on your analysis of the P/E ratio and other factors? Cash Flow Analysis: a. Examine the company's cash flow statement. What are the major sources and uses of cash for each of the three years? Are there any noteworthy trends or patterns? b. How do the company's cash flows impact its overall financial position and ability to fund its operations and investments? Risk Assessment: a. Identify and discuss any financial risks or challenges that the company may face based on your analysis of its financial statements. b. Propose strategies or actions the company could take to mitigate these risks and enhance its financial performance. Conclusion: a. Summarize the key findings and insights from your financial statement analysis. b. Provide any recommendations or areas for further investigation that have emerged from your analysis. These questions will guide your financial statement analysis lab project and help you to thoroughly analyze and report on the selected company's financial performance.