Financial statement analysis is everybodys business. Its importance cut across many disciplines in both academia and industry. Showing a good understanding and interpreting financial statement has therefore become relevant in the study of Business Finance. Your task under this section is to analyze the financial statements of two selected firms and write a report on the performance of the firms to be presented to potential investors using the guidelines below. 1. Download the file Financial statement.xls as attached to the additional files on the UPSA Virtual Platform. Alternatively, follow the link provided below to assess financial statement of two firms: Armcor PLC and Sealed Air PLC listed on the S&P 500. The financial statements comprise of separate Balance Sheet and Income Statement for the two companies. https://drive.google.com/open?id=16VDq53Q3vgkubKUcO7JyI96Vxsw22Vul 2. Visit Yahoo! Finance at http://finance.yahoo.com/ to read more about the two companies Required A. Write a short description of Armcor PLC main line of business only. Be sure to include the following details i. The stocks most recent price, trade date, and trade time. ii. A description of the highest and lowest prices the stock has reached in the past year. iii. The companys market capitalization, price-earnings (P/E) ratio, and its price-tobook ratio. Describe what each ratio means. (5 marks) B. Use the balance sheet and income statement data you gathered to complete this section for both Armcor PLC and Sealed Air PLC. i. Complete a simple financial statement analysis of the two companies (calculating and discussing at least two ratios under each Liquidity, Profitability, Leverage, Market/Investment and Efficiency ratios). (20 marks) ii. Analyze the results of the two companies. Your discussion should focus on the changes in relation to the ratios computed in 2(a) above. (5 marks) The table below suggest possible financial ratios that can be calculated. Students can select two ratios under each heading. LIQUIDITY RATIO Armcor PLC Sealed Air PLC Cash Ratio Current Ratio Acid T est Ratio LEVERAGE RATIO Total Debt ratio Debt/Equity Ratio Debt/Equity Ratio (approximated) PROFITABILITY Gross profit margin Net Profit Margin Operating Income margin EFFICIENCY RATIO Inventory turnover Period Trade Receivable period Trade Payable Period MARKET/INVESTMENT RATIO EPS P/E ratio Interest cover ratio Dividend Cover ratio.