Now that you have your team and company-pair approved, your team is required to perform the following analyses, write a report of results, and write a letter to a potential investor. Below is the scenario surrounding this project: Target and Walmart 1. Your analysis should include the following: a. i.Present a 4 or 5-year trend analysis, using the earliest year as the base year, of (1) net sales, (2) net income. For example, the trend could include 2018, 2017, 2016, and 2015 (base year). A graphical presentation is recommended. i>DISCUSS THE SIGNIFICANCE OF THE TREND RESULTS FOR BOTH COMPANIES AND COMPARE. b. i> Compute the 2015 through 2018 (1) profit margin, (2) asset turnover (3) return on assets, and (4) return on common stockholders' equity. lii> DISCUSS THE PROFITABILITY OF BOTH COMPANIES AND COMPARE. c. i> Compute for 2015through 2018 the (1) debt to total assets ratio and the(2) times interest earned ratio. li> EVALUATE THE SOLVENCY OF BOTH COMPANIES AND COMPARE. d. i> Compute the (1) current ratio, the (2) acid-test (quick) ratio, (3) receivables turnover, and (4) inventory turnover. ii> COMMENT ON THE LIQUIDITY OF BOTH COMPANIES AND COMPARE. e. NOTE: If you do not have enough information to compute a ratio, you MUST indicate the ratio and WHY you were unable to compute it. 2. Prepare a report that presents ALL your computations and discussions [-n Part 2. The report should be ORGANIZED AND easy to follow (i.e., put your computation in labeled tables like Exhibit A of this document). 3. Prepare a letter to accompany the report. The LETTER should NOT go into detail about formulas and how amounts were determined. Instead, the letter should immediately in the first paragraph) state the purpose of the analysis and your RECOMMENDATION. The paragraphs to follow should discuss HOW and WHY you make the recommendation. Most importantly, your letter MUST reference the report throughout. Be sure to mention in the first paragraph that you have attached a detailed report on which your recommendation is based. Now that you have your team and company-pair approved, your team is required to perform the following analyses, write a report of results, and write a letter to a potential investor. Below is the scenario surrounding this project: Target and Walmart 1. Your analysis should include the following: a. i.Present a 4 or 5-year trend analysis, using the earliest year as the base year, of (1) net sales, (2) net income. For example, the trend could include 2018, 2017, 2016, and 2015 (base year). A graphical presentation is recommended. i>DISCUSS THE SIGNIFICANCE OF THE TREND RESULTS FOR BOTH COMPANIES AND COMPARE. b. i> Compute the 2015 through 2018 (1) profit margin, (2) asset turnover (3) return on assets, and (4) return on common stockholders' equity. lii> DISCUSS THE PROFITABILITY OF BOTH COMPANIES AND COMPARE. c. i> Compute for 2015through 2018 the (1) debt to total assets ratio and the(2) times interest earned ratio. li> EVALUATE THE SOLVENCY OF BOTH COMPANIES AND COMPARE. d. i> Compute the (1) current ratio, the (2) acid-test (quick) ratio, (3) receivables turnover, and (4) inventory turnover. ii> COMMENT ON THE LIQUIDITY OF BOTH COMPANIES AND COMPARE. e. NOTE: If you do not have enough information to compute a ratio, you MUST indicate the ratio and WHY you were unable to compute it. 2. Prepare a report that presents ALL your computations and discussions [-n Part 2. The report should be ORGANIZED AND easy to follow (i.e., put your computation in labeled tables like Exhibit A of this document). 3. Prepare a letter to accompany the report. The LETTER should NOT go into detail about formulas and how amounts were determined. Instead, the letter should immediately in the first paragraph) state the purpose of the analysis and your RECOMMENDATION. The paragraphs to follow should discuss HOW and WHY you make the recommendation. Most importantly, your letter MUST reference the report throughout. Be sure to mention in the first paragraph that you have attached a detailed report on which your recommendation is based
