ACCT105 Wk5 Financial Statement Analysis

Instructions

Write a research paper on the following.  The assignment has four requirements:

1.) Select a publicly-traded company that is traded on U.S. exchange. Locate the annual report for at least the last three fiscal years.
Analyze the financial statements for the company and review for large movements in specific accounts from one year to the next. In addition, review the notes to the financial statements as these are an integral part of the financial reporting package. Evaluate the balance sheet to determine if there are large changes in the company’s assets, liabilities, or equity accounts. In addition, analyze the income statement and statement of cash flows.

2.)  Calculate the following ratios for two years, the debt-to-equity ratio, current ratio, quick ratio, return on equity, and net profit margin. For each ratio, explain what the ratio tells you about the company.

3.)  Prepare a vertical analysis of the income statement and balance sheet.

• 4.)  Prepare a horizontal analysis of the income statement and balance sheet.