Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I were recently hired as a financial analyst at Warner Bros., in the entellaing assess iu are asked by your Senior Financial manager to undertake

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
I were recently hired as a financial analyst at Warner Bros., in the entellaing assess iu are asked by your Senior Financial manager to undertake financial analysis and assess e leverage and profitability of the company and facilitate its comparison with Prime Video mazon). Use your critical thinking skills and answer the following questions: - Assess the long-term solvency of the two companies from the income statement and the abstract of the balance sheet given below. Which company is more solvent? - From the income statement and the abstract of the balance sheet given below, which company is managing the capital that shareholders have invested in it in a better manner? - As a financial analyst, which factors will you consider for forecasting profitability of a corporate? - Identify the ratio that measures the operating efficiency of a business and the company that has higher profitability. - If a company does not want to dilute its control, which type of financing should be emphasized and how is shareholders" equity determined? 2. You may use tables, graphs, or pie charts to support your summary. 3. Your individual response should be submitted through Brightspace (one file per person) to this submission folder. 4. Add submission time and full date. \begin{tabular}{|l|l|} \hline Warner Bros. Income Statement & FY 2022 \\ \hline Revenue & 69,570,000 \\ \hline Cost of Revenue & 42,018,000 \\ \hline Gross Profit & 27,552,000 \\ \hline Operating Expense & 15,701,000 \\ \hline Operating Income & 11,851,000 \\ \hline Interest Expense & 978,000 \\ \hline Taxes & 6,102,000 \\ \hline Net Income & 11,054,000 \\ \hline From the Balance Sheet & 93,000,000 \\ \hline Common Stock & 889,000 \\ \hline Retained Earnings & 1,00 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline PrimeVideo(Amazon)IncomeStatement & FY 2022 \\ \hline Revenue & 20,156,447 \\ \hline Cost of Revenue & 12,440,213 \\ \hline Gross profit & 7,716,234 \\ \hline Operating Expense & 5,111,980 \\ \hline Operating Income & 2,604,254 \\ \hline Interest Expense & 488,878 \\ \hline Taxes & 195,315 \\ \hline Net Income & 2,115,760 \\ \hline From the Balance sheet & \\ \hline Shareholders" Equity & 5,000,000 \\ \hline Retained Earnings & 149,419 \\ \hline \end{tabular} I were recently hired as a financial analyst at Warner Bros., in the entellaing assess iu are asked by your Senior Financial manager to undertake financial analysis and assess e leverage and profitability of the company and facilitate its comparison with Prime Video mazon). Use your critical thinking skills and answer the following questions: - Assess the long-term solvency of the two companies from the income statement and the abstract of the balance sheet given below. Which company is more solvent? - From the income statement and the abstract of the balance sheet given below, which company is managing the capital that shareholders have invested in it in a better manner? - As a financial analyst, which factors will you consider for forecasting profitability of a corporate? - Identify the ratio that measures the operating efficiency of a business and the company that has higher profitability. - If a company does not want to dilute its control, which type of financing should be emphasized and how is shareholders" equity determined? 2. You may use tables, graphs, or pie charts to support your summary. 3. Your individual response should be submitted through Brightspace (one file per person) to this submission folder. 4. Add submission time and full date. \begin{tabular}{|l|l|} \hline Warner Bros. Income Statement & FY 2022 \\ \hline Revenue & 69,570,000 \\ \hline Cost of Revenue & 42,018,000 \\ \hline Gross Profit & 27,552,000 \\ \hline Operating Expense & 15,701,000 \\ \hline Operating Income & 11,851,000 \\ \hline Interest Expense & 978,000 \\ \hline Taxes & 6,102,000 \\ \hline Net Income & 11,054,000 \\ \hline From the Balance Sheet & 93,000,000 \\ \hline Common Stock & 889,000 \\ \hline Retained Earnings & 1,00 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline PrimeVideo(Amazon)IncomeStatement & FY 2022 \\ \hline Revenue & 20,156,447 \\ \hline Cost of Revenue & 12,440,213 \\ \hline Gross profit & 7,716,234 \\ \hline Operating Expense & 5,111,980 \\ \hline Operating Income & 2,604,254 \\ \hline Interest Expense & 488,878 \\ \hline Taxes & 195,315 \\ \hline Net Income & 2,115,760 \\ \hline From the Balance sheet & \\ \hline Shareholders" Equity & 5,000,000 \\ \hline Retained Earnings & 149,419 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fire Extinguisher Log Book

Authors: Arahan Khan

1st Edition

B09TZKR5Z4, 979-8428924282

More Books

Students also viewed these Accounting questions