Select an industry you are interested in and select two companies within that industry. Everyone choose a different company. Obtain their annual reports by going to each companys website and downloading the report for the most recent year. (On many companies websites, you will need to visit the Investor Relations section to obtain the companys financial statements.) You may also collect the information from the Yahoo Finance website

1. Calculate two ratios that measure the ability to pay current liabilities.

2. Calculate at least two ratios that measure the ability to pay long-term debt

3. Calculate at least two ratios that measure profitability

*SHOW YOUR WORK

Now that you have crunched the numbers, interpret the ratios. What can you tell about each company and its financial position? Is one company clearly better than the others in terms of its financial position, or are the companies similar to each other?

Use one of the companies you chose above. Review their Statement of Cash Flows.

Overall, was cash increased or decreased by operating activities?

What were the major uses or sources of cash related to investing?

What were the major uses or sources of cash related to financing?

What is disclosed about the Statement of Cash Flows in the Notes to the Financial Statements