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Introduction/Discussion Task: This course has introduced you managerial accounting activities that companies use to make informed management decisions, starting with cost identification, then using analysis

Introduction/Discussion Task:

This course has introduced you managerial accounting activities that companies use to make informed management decisions, starting with cost identification, then using analysis techniques to evaluate financial statements. Whether or not you ultimately work in managerial accounting or another field, being able to understand the key financial statements of a company is critical. Financial statements serve as the basis for making decisions by internal management, external investors, and analysts. Additionally, company employees, customers, and vendors should understand company financial performance to ensure the company will be able to meet its obligations (e.g., covering payroll, providing a product, paying invoices). In this forum, you're expected to apply the analysis tools to an actual company by responding to the following:

Last week, you performed a trend analysis for the manufacturing company you selected in week 2. For this week, refer back to that company and assess the financial statements using the ratio tools you have acquired in the course. Select at least one profitability, liquidity, solvency, and market valuation ratio and evaluate the results. Based on your findings, post an initial response to the following:

  • What do the metrics tell you about the companys performance? Support your answer by explaining the results from your assessment.
  • If you were considering investing in the company, what other questions would you ask to gain further insight into the performance?

Note:

Your discussion should have a minimum of 250 words in length and no more than 450 words. Please include a word count. Following the APA standard, use references and in-text citations for the textbook and any other sources.

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