Purpose of Assignment The activity requires students to perform research and
analysis on competing companies and the potential implications of international
standards. This real-world analysis is key to understanding how a company’s
profitability, liquidity, and solvency can be useful for all users. Students
also learn to analyze financial statements and use managerial tools to make
decisions from an investor’s and creditor’s standpoint. Assignment Steps Resources: U.S. Securities and Exchange Commission (SEC),
websites such as Annual Reports (AnnualReports.com) Tutorial help on Excel® and Word functions can be found on
the Microsoft® Office website. There are also additional tutorials via the web
offering support for Office products. Select two competing companies, one of which must be an
international company, and locate annual reports for these two companies on the
Internet. Research the two companies on the Internet and download the
Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and
Statement of Cash Flows. Develop a minimum 525-word examination of the financial
statements and include the following:Make a 5-year trend analysis for each company, using 2011 as
the base year, of:Net sales.Net income. Discuss the significance of the trend results.Compute for 2015 and 2014 the:Debt to assets ratio.Times interest earned. How would you evaluate each company’s
solvency?Compute for 2015 and 2014 the:Profit margin.Asset turnover.Return on assets.Return on common stockholders’ equity. How would you
evaluate each company’s profitability? Evaluate the financial opportunity presented by the
companies. If you were a creditor, which company would you be more likely to
lend money to? Defend your decision.Which company would you recommend as an investment?Discuss the items that were considered in
your decision.Research global implications for the international company
selected. How might changing environmental factors affect organizational
choices? Consider the ethical climate (internal or external) of your
chosen companies. Describe the ethical issues and impact on the stakeholders.
What has been/is being done to resolve these issues? Do you agree with these
methods for resolution? If not, what might you do differently?Show your work in Microsoft® Word or Excel®. Complete calculations/computations using Microsoft® Word or
Excel®.Include the four financial statements along with your
assignment.Format your assignment consistent with APA guidelines.
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