There are two parts to this case which require you to prepare and submit a paper. Please make sure this paper is well organized and covers all of the items below.
Part I. Search the course background information, the Internet and/or the Cyber Library. Discuss each of the following terms. Your discussion should expand on the definition as given in the course terms. Explain why this concept is important to financial statements.
A. Generally Accepted Accounting Principles.
B. Liquidity.
Part II. Refer to the latest annual financial statements or quarterly reports for the two following companies: Unilever and Kraft. Generally, this information is found in the Investor Relations area of the website.
Locate the following on each of the statements:
The Balance Sheet
The Income Statement
The Statement of Cash Flows (you may have to search the company site to find this information if it is not in the annual reports)
Which is more useful in your opinion for each of the two companies: Net Income or Cash from Operating Activities?
Make two predictions about each company from that company's financial statements. Reach one additional conclusion about each company from the additional information you find in the annual report. Support your analysis with computations.
Clearly identify the company, the time period, and include the link to the financial statments you are analyzing.