ACCOUNTING FOR DECISION-MAKING
You will choose a public company and prepare a financial analysis of the company based on the selected company's annual report for the fiscal year 2011.
Your report should include:
A detailed analysis and evaluation of the company's liquidity, profitability position and solvency.
Required:
A. Format and referencing
B. Liquidity
C. Solvency
D. Profitability
E. Comment on the information given in the cash flow statement. Explain what are primary sources and uses of cash and how stable are the major sources of cash? What activities consume the preponderance of the cash?
F. What is the company's policy regarding revenue recognition and what inventory cost flow assumption it is using?
G. Based on your analysis what comments will you provide regarding the company's past performance and its future?
H. Would you invest your personal or corporate assets in the company? Why or why not?
I. Prepare common-sized income statements for the most recent two years, and comment on items which you deem important.