Question
Go towww.sedar.comand download the reports for the two corporations, after a careful search. Your tasks are as follows: Compare and contrast the two reports with
Go towww.sedar.comand download the reports for the two corporations, after a careful search. Your tasks are as follows: Compare and contrast the two reports with regards to the following criteria:
1) Perform a vertical analysis (common size) for each company. Use condensed Balance Sheet and Income Statement data to perform the calculations.
2) Which company was more effective in improving its profitability (either decreasing costs or increasing sales)? Has either company increased its Gross Profit or Net Income? What factors stated in the Annual Report might have contributed to this?
3) Perform a ratio analysis on each company to determine liquidity, solvency, and profitability.
4) Which company has improved the Debt to Asset and Equity to Asset Ratios?
5) Compare and contrast each company, making your recommendations as to which one would be the best investment in the short run and in the long run.
6) Create a summary of your recommendations, including a vertical analysis, showing both companies' financial highlights side by side, and a spreadsheet showing at least five ratios, comparing liquidity, solvency, and profitability for both companies (maximum three single spaced pages with required calculations, exclusive of a title page; works cited page not required). Include comments on your assessment of each company's contribution to the ideal of Common Good. (Hint* Look at the Social Responsibility section of their website.) 2 paragraphs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Vertical Analysis Common Size To perform a vertical analysis you need the condensed Balance Sheet and Income Statement data for each company Calculate ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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