TO: The Manager

FROM: Megan Hawkins

CC: File

DATE: 3/18/2021

RE:Analyzing the Financial Summary (Tiffany & Co. (TIF))

I would like to discuss the financial summary of Tiffany & Co. for the year 2020.

Tiffany & Co. is a jewelry store that was created in 1837 and still remains popular today. Gaining an understanding of the industry and type of business makes it easier to know how to compare and contrast financial documentation to gage success and profitability. Notes that can be helpful when reviewing financial statements include: "Accounting policies/methods, unused lines of credit, commitment and loss contingencies, current values of financial instruments, dividends in arrears, concentrations of credit risk, and assets pledged to secure specific liabilities" (Williams, 653).

Current Ratio

$6,935,000.30 (Assets) / $3,267,000.20 (Liabilities) = $3,668,000.10

Operating Income

$843,000,000.20 (Operating Expenses) / $119,000,000.00 (Net Sales) = $724,000,000.20

Cash Flow From Operations to Current Liabilities

$284,000,000.50 (Cash Flow from Operating Activities) / $3,269,000.20 (Total

Liabilities) = $280,731,000.30

How would I Inform the employee as to what specific managerial decisions, conclusions, and/or judgments can you make from the information provided in that memo.