The four key users of financial statements are owners/managers, lenders, investors and governments. These users rely on financial statements to evaluate a company's past financial performance as indicators in areas of profitability, liquidity, leverage, and efficiency; to create benchmarking matrixes; and to support future decision-making.

Looking at the department stores JCPenny and Macy's as they are in the same industry. Complete several financial ratios for each company and compare them.

• What did your analysis tell you about these companies?
• What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer, etc.?