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Part 1 ( I did most of part 1, have not commented on effects) Your analysis should include the following: Make a 4 or 5-year

Part 1 ( I did most of part 1, have not commented on effects)

Your analysis should include the following:

Make 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 2013, 2012, 2011, 2010, and 2009 (base year). COMMENT ON THE SIGNIFICANCE OF THE TREND RESULTS FOR BOTH COMPANIES AND COMPARE.

Compute the 2013 and 2012 (1) profit margin, (2) asset turnover, (3) return on assets, and (4) return on common stockholders equity. COMMENT ON THE PROFITABILITY OF BOTH COMPANIES AND COMPARE.

Compute for 2013 and 2012 the (1) debt to total assets and (2) times interest earned ratio. EVALUATE THE SOLVENCY OF BOTH COMPANIES AND COMPARE.

Compute the (1) current ratio, the (2) acid-test (quick) ratio, (3) receivables turnover, and (4) inventory turnover. COMMENT ON THE LIQUIDITY OF BOTH COMPANIES AND COMPARE.

NOTE: If you do not have sufficient information to compute a ratio, you MUST indicate the ratio and WHY you were unable to compute it.

Part 2

Along with a cover letter, prepare a report of ALL of your computations to give to your boss. The report should be ORGANIZED AND easy to follow (i.e., put your computation in labeled tables similar to Exhibit A of this document).

The COVER 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.

image text in transcribed

Net Sales (in millions U.S. Dollars) Net Income 2011 9173700 379 osoo (Base) 2012 10,737.00 46,039 oo 2013 12,733.00 55,519.00 14,136.00 2014 66,001.00 2015 16,348.00 74,989.00 (in millions U.S. Dollars) Net Income Net Sales (Base) 631.00 48,080.00 2011 -39.00 61,090.00 2012, 2013 274.00 74,450.000 -241.00 88,990.00 2014 596.00 107,010.00 2015 2014 Google 0.218 Profit Margin o.214 1 Asset Turnover 11.77% 11.79% Return on Assets Common SH Equity 120,331.oo 104,500.00 Profit Margin 0.0056 -0.0027 Asset Turnover 1.63 -0.44% Return on Assets o.91% Common SH Equity 107,400.00 133, soooo

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