Regarding Enron, this was a company that resulted in the creation of the Sarbanes-Oxley Act and many reforms to the accounting profession. Research the company and answer the following questions.

• How did the members of the accounting firms violate the standards of integrity and credibility?
• Do you believe the new standards that resulted from the Enron scandal to be adequate?
• Name and explain two aspects of the Sarbanes - Oxley Act of 2002.
• Ratio Analysis. Using the 2000 Enron 10-K, calculate 2 years of the following liquidity, solvency and profitability ratios. Include your calculations and analysis for these ratios and what they tell you about the company in a minimum of 1 page.

Liquidity: Current ratio, Accounts receivable turnover

Solvency: Debt to assets ratio, Times interest earned

Profitability: Profit margin, Earnings per share