Ratio Analysis

Part 1 (60 points) - Ratio Analysis You are provided with the financial statements and ratios of a company and its chief rival (see pages 2-5). Based on this information, evaluate the company and provide your analysis on relevant trends or conditions which can be noted. You may decide to conduct your analysis from the point of view of a banker, supplier, investor, executive, manager and/or other appropriate situation. You should focus on what you see as relevant rather than simply repeating data that is already given. Why is a certain ratio or number relevant? What might be the reason for numbers you notice? What is the implication to the company's business or your decision to work with/for or to invest in the company? As background, the company and its competitor are both international contract electronics manufacturers. Both are US-based, but they have factories in many different countries. You will not see their names on the outside of a product. Their customers are the large famous electronics brands that are seen in everyday life. Special Instructions: You can highlight rows or specific areas and add a "note" number in the far right column. There is not enough room to write much on the data pages. Refer to the note number on the answer sheet. Then you can discuss that in your answer by stating "as seen in note 1", etc. Use your judgement to present your analysis in a logical format. There is no ONE correct set of answers for this exercise. Your task is to conduct a relevant analysis using concepts learned in class. If you correctly explain why your discussion is relevant, then you will earn points. One page of space is provided, but you can keep writing and expand the space to 2 or 3 pages as needed. Part 2 (40 points) - Management Accounting Topics You are presented with six (6) questions and are required to select EXACTLY four (4) of these questions to answer. POINTS WILL BE DEDUCTED IF YOU ANSWER MORE THAN FOUR (though you can cross out answers you have written and decided not to use). Each answered question is worth 10 points. You can write more than the space shown if the one page is not enough