Your write-up needs to address each the following area. Plainly label each section. Support your observations with numbers from your ratios or directional (horizontal & vertical) financial statements. For example, if long term debt increased, what caused it? Do you see an increase in property & equipment? Has the interest expense increase? Has depreciation jumped significantly? Sales Growth - Are Net Sales Growing? Are there any divisions or product lines growing? Does the annual report give any indication about the reason(s) for this? Does your directional analysis (horizontal or vertical) bear this out? Can we see the sales increase in the inventory turnover ratio? Cost Control - are expenses in line with the change in net sales? Look at the levels of costs including cost of goods sold, marketing expenses, and administrative expenses. Look at the COGS% change and the SGA% (selling, general & administrative expenses) changes. Again, support your observation with your directional analysis and/or ratios, Profitability. - Look at the three levels of profits: gross margin, operating profit and net income. How are they changing from year to year as a percentage of sales (vertical analysis)? Cash Flow and Liquidity - Is cash increasing or decreasing. Does that make sense in light of the profits? What about the liquidity ratios? Did you find a change in the current or the quick ratio? Look at the cash flow statements. Is operations generating or consuming cash? Is the growth of inventory reasonable as compared to the growing of cost of goods sold? Look at the accounts payable turnover ratio. And don't forget about accounts receivable and its change. Are you concerned with changes in the accounts receivable turnover ratio? Debt Levels - Is debt increasing or decreasing? Looks at the change in current and long-term liabilities in your directional analyses. What are the reasons for this change? Look at your debt ratios. Is there anything in annual report or outside articles to explain a significant change in debt, if you find one? Equity and Stock Market Factors - Has common stock plus the paid in capital on common stock increased? Has it decreased from a buyback of common stock (treasury stock)? What about the price of the stock, has it changed significant over the years of your analysis. Look at the price to earnings ratio and the dividend yield ratio. Do not put a lot of marketing promotional information into your write-up. If the MD&A from the annual report discussed marketing problems that help explain the financials, that would be useful. 10 Kohn Ratin S SI Kohl's Summary Cash Flow Simi 2015 Lady Race Currentie Quick Rate Crowd 450 120 SEE 2016 673 556 . Beginning Cash Nech Flow from Operating Activities Net Cash Flow from loving Active 27.16 . 104 452 . 1494 2,14 SIE C+ 403 . 11 .756 1,4931 1.0251 30 Ne Cash Flow from Financing Active Cashning balance 2:59 LT HE 27 Ech Activity Aesthe Time Day Sales Conding Inventory Tam Acely thuysenting Rate TER De Equity Titel ay One Play Op Mer Net Myin Che Flow Margie Retur me Reum M BAR Shoe Peeter Dwi Yuld w MI 434 WE ERE 322 032 Kohl Vertical Animated HTC Net COM 21 19H00 1.100 12.00 63 08 14 1 TELE NA MAP 10 33 " LAI 4,433 2 . site Lisa 1558 1,0 M - 10 www 1 11 CI TIS HAT 73 41 Incense 42 2014 ME 154 20 16 IN U 129 339 955 11