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Pick U.S. public company that you are familiar with or one in which you may have an interest not, McKesson, amazon, Dow and Airbnb. Question

Pick U.S. public company that you are familiar with or one in which you may have an interest not, McKesson, amazon, Dow and Airbnb.

Question 1

  • explain your interest in the company and its business.
  • Go to the company's website and locate the most recent annual financial statement (10-K or Annual Report). Include a screenshot of the website and a link to the financial statement in your write-up.
  • Download and save the financial statement. Submit the file as separate file as part of the assignment.
  • Does the corporation have an operating income or loss?
  • What is the amount of total assets on the balance sheet?
  • What type of the information is found in Statement of shareholders equity?
  • What type of the information is found in Statement of cash flows?
  • How is the statement of cash flow different than the income statement?
  • The report includes a lot of information in addition to the financial statements. Provide examples of two other kinds of content and makes a brief comment about each example.

Question 2

The financial statements tell a story about the financial health of a business at a given point in time. The purpose of this assignment is to apply ratio analysis to assess financial health of a publicly held corporation. from first question compute three ratios, one for each of the three following categories

  • Liquidity (solvency),
  • debt service, and
  • Profitability.

Comment on the ratios by answering the following questions

  1. Name the company and show the computation of the three ratios.
  2. Comment on the purpose and information conveyed by each ratio.
  3. What did you learn about the company by reviewing the three ratios?
  4. What is your conclusion about liquidity, debt, and profitability for this company?
  5. How successful is the company relative to the industry average and leaders in its industry? Indicate the industry and specialty industry report used for comparison.

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