This assessment is related to the Core Ability for this course, which is stated in the syllabus as "Communicate Effectively."

You will complete this assignment based on the impact of the Sarbanes-Oxley Act on the quality of financial statements, the components of

a corporation's Balance Sheet, Income Statement, and Statement of Cash Flows, and key financial ratios utilized in financial statement

analysis.

You will utilize Chevron as a focus company. To get started, navigate to the Financial Information section of their website and locate their

latest financial statements by clicking on their Annual Report or Interactive Analyst Center (click on "Annual" tab if you select this option).

Respond to the following questions

1. Explore Chevron's annual Income statement for the past two available years. Identify the trend (i.e. increase or decrease)

demonstrated by Total Revenues and Other Income, Total Costs and Other Deductions, and Net Income (Loss) for each year. Also,

identify at least one separate revenue or expense increase or decrease within the revenue and expense sections

2. Explore Chevron's annual Balance Sheet for the past two available years Identify the trend (i.e. increase or decrease) demonstrated

by Total Assets, Total Liabilities, and Total Equity for this time period. Also, identify at least one separate asset or liability increase or

decrease within the Asset and Liability sections.

3 Explore Chevron's annual Statement of Cash Flows for the past two available pears. Identify the trend (ie increase or decrease)

demonstrated by Net Cash Provided/(Used) by Operating Activities, Net Cash Provided/(Used) by Investing Activities, and Net Cash

Provided/(Used) by Financing Activities. As a result of these three totals indicate the amount of the Net Change in Cash for the time

period Explain what this number means and why it is determined

4. Based on our review of Chevron's financial reports for the three previous requirements, discuss any areas of concern and your

belief as to if the companv is currently in a strong financial position or heading into trouble

5 Assume that vou interviewed Chevron's Chief Financial Officer (CFO") and the CFO confidentially shared with you that for the latest

quarter, which be will reported next week, Chevron's Net Profit Margin increased from 15% last quarter to 17% this quarter Define

the Net Profit Margin and how it is determined. Indicate if the company's results are good news or bad news. If the CFO would like to

target a 20% Net Profit Margin for the next quarter, what needs to occur in terms of the Chevron's performance?

6. During the same conversation with the CFO in the previous question, it was confidentially shared with you that that for the latest

quarter which will be reported next week, Chevron's Current Ratio increased from 3.0x last quarter to 3.5x this quarter. Define the

Current Ratio and how it is determined. Indicate if the company's results are good news or bad news. If the industry standard for a

similar energy company is 4.0x, what types of changes would Chevron need to make in order to achieve this level for its Current

Ratio as a target for next quarter?

7. Describe the impact of the Sarbanes-Oxley Act ('SOX") on the quality of Chevron's financial statements by including the purpose of

this law and two changes that impacted the accounting profession and/or Chevron. Based on your understanding of SOX, indicate if

you have greater confidence in Chevron's financial reports that you reviewed than you would if the law did not exist and provide your

rationale.