Survey of Accounting Class 27 Packet Calculate the following financial ratios for Facebook and Snap, Inc. You will need to access the financial statements on your own as they will not be provided in the Excel file. You can access these by using a finance website such as Yahoo Finance or going to the SEC website (SEC.gov > Company Filings > Search by name or ticker symbol > Find the most recent 10-K filing and then click on the "Interactive Data" blue button). Input all dollar answers in thousands of dollars (e.g., input $1,000,000 as $1,000) Ratio Facebook (FB) Snap, Inc. (SNAP) Working Capital $43463000 $1383237 Current Ratio 7.194 5.726 Quick Ratio 6.940 5.583 8.322 3.721 Accounts Receivable Turnover Ratio Average Days to Collect Receivables 43.86 98.09 Survey of Accounting Class 27 Packet Ratio Facebook (FB) Snap, Inc. (SNAP) Debt to Assets Ratio 0.136 0.149 Debt to Equity Ratio 0.157 0.174 Net Margin (Return on Sales) 0.369 -1.064 Asset Turnover Ratio 0.614 0.385 Return on Assets (ROA) (Return on Investment [ROI]). Return on Equity (ROE) 0.243 -0.409 0.279 -0.474 Earnings Per Share $7.65 - $ 0.97 Price-Earnings (P/E) Ratio* 17.14 *The stock prices at their fiscal year end were the following: FB $131.09 SNAP $5.51 -5.68 Survey of Accounting Class 27 Packet Perform vertical and horizontal analysis of each company's income statement and balance sheet to be able to answer the following questions. 1. Which company holds the most cash as a percentage of assets? 2. Which company has the highest operating income? 3. Which company experienced the greatest percentage growth in revenue? 4. Which company makes the most profit from $1 of sales? 5. Which company has the highest retained earnings as a proportion of total assets? Survey of Accounting Class 27 Packet 1. Which company is the most liquid? Which ratios support this conclusion? 2. Which company is most solvent? Which ratios support this conclusion? 3. Which company is most profitable? Which ratios support this conclusion? 4. Which of the three companies would you invest in? Why