Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MY COMPANY IS NIKEEEEE (i need it ASAP please) nalyze the company's income statement for the past three years. Identify the trend (i.e. increase or

MY COMPANY IS NIKEEEEE (i need it ASAP please)

  1. nalyze the company's income statement for the past three years. Identify the trend (i.e. increase or decrease) demonstrated by total revenue, total expense, and net income (or loss) for this time period. Also identify any major increases or decreases within the revenue and expense sections (if any). Cite numbers or percentages to support your response.
  2. Analyze the company's balance sheet for the past two years. Identify the trend (i.e. increase or decrease) demonstrated by total assets, total liabilities, and total owners equity for this time period. Also identify any major increases or decreases within the asset and liability sections (if any). Cite numbers or percentages to support your response.
  3. Based on your analysis of the income statement and balance sheet, discuss any areas of concern. Do you believe the company is currently in a strong financial position or heading into trouble? Support your reasoning.
  4. Describe how the financial statements that you evaluated impact internal and external stakeholders. For example, how would this information be used in your company by its management and executives? Also, who on the outside of the company would be interested in this information and how would it impact them?
  5. Assume that the Controller at your chosen company told you that the Profit Margin increased from 15% last year to 17% this year. Describe what the Profit Margin is and how it is determined. Indicate if the company's results are good news or bad news. If the Controller would like to target a 20% Profit Margin for next year, what needs to occur in terms of the company's performance?
  6. During the same conversation with the Controller in the previous question, you learned that the Current Ratio increased from 3.0x last year to 3.5x this year. Describe what the Current Ratio is and how it is determined. Indicate if the company's results are good news or bad news. If the industry standard for a similar company is 4.0x, what changes would your company need to make in order to achieve this level for it's Current Ratio as a target for next year?

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

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

5th Edition

0072975865, 978-0072975864

More Books

Students also viewed these Accounting questions

Question

Define the purpose of neuropsychological testing.

Answered: 1 week ago

Question

What is the cerebrum?

Answered: 1 week ago

Question

How organized or ready for action on this issue is this public?

Answered: 1 week ago

Question

What does this public know about your organization?

Answered: 1 week ago

Question

What does this public expect from your organization?

Answered: 1 week ago