Question
please answer the above questions based on the data and screenshots given, please please please do it correctly ASAP , please do not miss answering
please answer the above questions based on the data and screenshots given, please please please do it correctly ASAP , please do not miss answering any part . do it now, please thank u if u did correctly i will give it a like
answer these questions
2. Write a report for the following questions: a. How profitable are the companies in terms of Return on Assets (ROA), Return on Stockholders' Equity (ROCE)? Decide whether the companies' profitabilities are low, medium or high. What has contributed to the profitability, e.g., the decomposition of ROA into Profit Margin of ROA and Asset Turnover, and the decomposition of ROCE into Profit Margin of ROCE, Asset Turnover, and Capital Structure Leverage, as well as further determinations of Profit Margin and Asset Turnover. What are the trends? Comments on the possible reasons for the trends. This analysis may require students to use some benchmarks, for example, comparing with each other and with industry norms (You can find any reliable benchmark online), examining the companies historical performances, etc. Paste the screenshots of your lab results from Profitability sheet and DuPont sheet to appropriate places in your report. Cite the ratios from your lab results to support your argument.
b. Do the companies pose any liquidity and solvency risks (note: solvency ratios are presented in Financing sheet of the lab)? Decide whether the companies have low, medium, or high liquidity and solvency risks. What are the trends and possible reasons? What are the most recent bond ratings from the rating agencies including Standard & Poor's, Moody's, and Fitch? You would be able to find some other risk factors in the Item 1A of 10K form. You may also link these qualitative risk factors with the financial risk. Whether these risk factors are sustainable or not? Paste the screenshots of your lab results from Liquidity sheet and Financing sheet to appropriate places in your report. Cite the ratios from your lab results to support your argument.
c. Regarding to activity ratios, do the two companies efficiently leverage their resources to generate sales revenue and cash? How do the two companies utilize accounts receivable and inventory to generate sales?
C1. Read the notes to 10-K and figure out the revenue recognition policy for each company. Is the company aggressive in revenue recognition? What is the level of receivables compared to sales? Do the two companies offer customers with generous trade credits and collect cash from customers in time? (For example: analyze the allowance for doubtful accounts. Do the companies' bad debt expense and allowances consistent over time? Do you believe more trade credits could boost sales?)
C2. Read their 10-Ks, what accounting method (FIFO, LIFO, weighted average, or specific identification) do the two companies use to value inventory? Whats the
percentage of inventory compared assets for both companies (you need to do the calculations by yourself using the data from 10-Ks)? Do you think the two companies face obsolete inventory problem based on inventory turnover ratio? Read their 10-Ks, do the two companies write off any inventories based on the lower of cost or market accounting method? Read 10-Ks, how do the two companies determine the market value of inventories? Afterall, do you think the two companies products/services are popular or not?
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AND HERE ARE THE DATA FOR MICROSOFT COMPANY :
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please answer the above questions based on the data and screenshots given, please please please do it correctly ASAP , please do not miss answering any part . do it now, please thank u if u did correctly i will give it a like
CurrentliablitiesCurrentzeests 2 fuick Cash + accounts resevable Qurrent liablities FINANCING RATIOS: Ability to pay long-term debts 3 Debt to equty - financial leverage Totallablinios 4 Times interest esmed InterastexporeseNI+Int.eKp.+Inctawes ACTIVITY RATIOS: Evaluate a company's effectiveness in managing assets 5 Aeset tumover 6 Recewable turnorer 8 inerage colector period 9 Average eays in inventory 36s I wavtary turnaver Lab Exhibit A fr Fle Eolt Vew Insart Farmat Dats Toals Extenaions Halp IXBRLAnalyst Last aditwse 7 minutes age A.: PROFITABILITY RATIOS: Evaluate various aspects of a company's profit-making activities 10 Profit mang on cn salas NatsalesNe:incone 11 Resun on asoets \RCA) RwraantocalaisintsNerincome 12 Feturn on assete |leclusling interes.| NI + Ini esp 11 - ban -ale!, AverozeshrehoiderssqutyNisincaue 14 Ezulty m.Itipicr DUPONT FRAMEWORK + E Facts = Liquidity = Financing * Asctivity = Profitability * DuPont * Sury - * Project n3 Lab-1,pod Profitability Ratios Profitability rtios eaaluste various aspects of Apple Inc.'s profit-making activities. Financing Ratios Financing ratca indicate Afpic Inc.'s ability to pay its long term debts and shaws financial kewernge. The DuPont Framework The DuPont Framewark autlines the components that affect return on equity as a cambinstion af asset management and praf tablity Activity Ratios Activity ratios evaluate Apple Inc.'s effectiveness in manaping assets. Liquidity Ratios Liquidity rat Ia's indicate Apple inc.'s abillty to pay its shart-tarm dahts. Exploring Financial Ratios Financing Iatios Financing ratios indicate Microsoft Corp's ability to pay its long-term debts and shows financial leverage. The DuPont Framework The DuPont Framework outlines the components that affect return on equity as a combination of asset management and profitabilit Activity Ratios Activity ratios evaluate Microsoft Corp's effectiveness in managing assets Liquidity Ratios Liquidity ratios indicate Microsoft Corp's ability to pay its short-term debt Profitability Ratios Profitability ratios evaluate various aspects of Microsoft Corp's profit-making activities. FINANCING RATIOS: Ability to pay long-term debts 3 4 ACTIVITY RATIOS: Evaluate a company's effectiveness in managing assets PROFITABILITY RATIOS: Evaluate various aspects of a company's profit-making activities CurrentliablitiesCurrentzeests 2 fuick Cash + accounts resevable Qurrent liablities FINANCING RATIOS: Ability to pay long-term debts 3 Debt to equty - financial leverage Totallablinios 4 Times interest esmed InterastexporeseNI+Int.eKp.+Inctawes ACTIVITY RATIOS: Evaluate a company's effectiveness in managing assets 5 Aeset tumover 6 Recewable turnorer 8 inerage colector period 9 Average eays in inventory 36s I wavtary turnaver Lab Exhibit A fr Fle Eolt Vew Insart Farmat Dats Toals Extenaions Halp IXBRLAnalyst Last aditwse 7 minutes age A.: PROFITABILITY RATIOS: Evaluate various aspects of a company's profit-making activities 10 Profit mang on cn salas NatsalesNe:incone 11 Resun on asoets \RCA) RwraantocalaisintsNerincome 12 Feturn on assete |leclusling interes.| NI + Ini esp 11 - ban -ale!, AverozeshrehoiderssqutyNisincaue 14 Ezulty m.Itipicr DUPONT FRAMEWORK + E Facts = Liquidity = Financing * Asctivity = Profitability * DuPont * Sury - * Project n3 Lab-1,pod Profitability Ratios Profitability rtios eaaluste various aspects of Apple Inc.'s profit-making activities. Financing Ratios Financing ratca indicate Afpic Inc.'s ability to pay its long term debts and shaws financial kewernge. The DuPont Framework The DuPont Framewark autlines the components that affect return on equity as a cambinstion af asset management and praf tablity Activity Ratios Activity ratios evaluate Apple Inc.'s effectiveness in manaping assets. Liquidity Ratios Liquidity rat Ia's indicate Apple inc.'s abillty to pay its shart-tarm dahts. Exploring Financial Ratios Financing Iatios Financing ratios indicate Microsoft Corp's ability to pay its long-term debts and shows financial leverage. The DuPont Framework The DuPont Framework outlines the components that affect return on equity as a combination of asset management and profitabilit Activity Ratios Activity ratios evaluate Microsoft Corp's effectiveness in managing assets Liquidity Ratios Liquidity ratios indicate Microsoft Corp's ability to pay its short-term debt Profitability Ratios Profitability ratios evaluate various aspects of Microsoft Corp's profit-making activities. FINANCING RATIOS: Ability to pay long-term debts 3 4 ACTIVITY RATIOS: Evaluate a company's effectiveness in managing assets PROFITABILITY RATIOS: Evaluate various aspects of a company's profit-making activitiesStep by Step Solution
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