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Research the two companies on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows. Develop a
Research the two companies on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows.
Develop a minimum 500 word examination of the financial statements and include the following:
- Make a 2-year trend analysis for each company, using 2013 as the base year, of:
- Net sales.
- Net income. Discuss the significance of the trend results for the net sales and net income.
- Compute for 2015 and 2014 the:
- Debt to assets ratio.
- Times interest earned ratio. Discuss how would you would use these results to evaluate each company's solvency?
- Compute for 2015 and 2014 the:
- Profit margin.
- Asset turnover.
- Return on assets.
- Return on common stockholders' equity. Discuss how you would use these results to evaluate each company's profitability?
- Evaluate the financial opportunity presented by the companies. If you were a creditor, which company would you be more likely to lend money to? Defend your decision. Identify each team member's final thoughts, as you may not reach a consensus.
- Which company would you recommend as an investment?Discuss the items that were considered in your team's decision. Again, if no consensus is achieved, identify each member's final thoughts on this question.
- Research and list global implications for the U.S. based international company selected. How might changing environmental factors affect their organizational choices?
- Consider the ethical climate (internal or external) of your chosen companies. Describe the ethical issues and impact on the stakeholders.
Show your work in Microsoft Word or Excel.
Complete the formulas andcalculations/computations using Microsoft Word or Excel.
Include the four financial statementsfor each company along with your assignment
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