Problem
• Use the Internet to research an annual report of a retail company.
• Then, imagine you are an investor or creditor; suggest the ratios that you believe would provide an investor or creditor with the most important information needed to make accurate predictions about the company's financial condition.
• When analyzing a company, is it more important to compare the ratios to competitors or to the company's previous history?
• Discuss why it is just as important to analyze financial statements as it is to prepare them.
• Discuss how business owners and leaders can use financial statement ratios to make decisions.
• Provide a rationale for your response.
• Note: Students using the online discussion thread must provide a link or instructions to the researched report.