Question
Part I. Ratio Computation (20 points) You are required to compute the ratios listed below for each of the three years for your project. For
Part I. Ratio Computation (20 points) You are required to compute the ratios listed below for each of the three years for your project. For every calculation, show the reference to the page number of the annual report where the ratio components were found. For numbers that have been restated in more current years, you are to use the most current years report available. Do not use ratios computed by industry sources; you are to compute your own. If a certain ratio cannot be computed, explain this fact. 1.Current ratio 2.Debt to Equity3.Debt to Assets4.Asset Turnover (an efficiency measure)5.Return on Sales or Net Profit Margin (a profitability measure)6.Return on equity7.Return on Investment8.Earnings Per Share9.A/R Turnover ratio & Average Days to Collect10.Inventory Turnover & Average Days to SellPart II. (15 points) Answer the following questions for each of the three years for your company. Show the reference to the page number of the annual report where you looked to answer each question. A.What does the company report as an extraordinary item, discontinued operations or change in accounting principle?B.What inventory costing method(s) is used?C.What depreciation method(s) is used?D.Compare the cash inflow (outflow) differentiated between operating, financing and investing activities. Briefly interpret this.E.Describe the classes of stock for the company, commenting on the relative significance of each.F.Who is the company's auditor?G.Is the auditor's opinion unqualified or qualified? If qualified, explain the reason(s) for the qualification. Part III. Ratio Discussion (15 points) Prepare an interpretation of the ratio trends computed in Part 1; while each of the 10 ratios should be interpreted, an integrated holistic analysis is preferred to a list. No more than one single spaced typed page is allowed, for this portion, although thorough discussion is required. Please consider your audience when you write this, as you would any written work.
https://s21.q4cdn.com/448935352/files/doc_financials/2020/ar/2020-AEE-Annual-Report.pdf
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