Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 73

Team Activity
In teams, select a public company that interests you. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities an Exchange Commission (SEC). It includes the company's financial statements and accompanying notes. The Form 10-K can be obtained either (A) from the investor relations section of the company's Web site or (B) by using the company search feature of the SEC's EDGAR database service found at www.sec.gov/edgar/searchedgar/companysearch.html.
1. Based on the information in the company's annual report, compute the following for the most recent year (round ratios and percentages to one decimal place, except for per-share amounts):
A. Liquidity analysis:
(1) Working capital
(2) Current ratio
(3) Quick ratio
(4) Accounts receivable turnover
(5) Number of days' sales in receivables
(6) Inventory turnover
(7) Number of days' sales in inventory
B. Solvency analysis:
(1) Ratio of liabilities to stockholders' equity
(2) Times interest earned
C. Profitability analysis:
(1) Asset turnover
(2) Return on total assets
(3) Return on stockholders' equity
(4) Earnings per share
(5) price-earnings ratio
2. Evaluate the company's liquidity, solvency, and profitability.