Instruction
Select any small- to medium-sized publicly traded company, and use the financial statements from that company (you can get these financial statements by going into Google finance, Yahoo finance, the company’s annual statements, or some financial databases in the library).
You are a new accountant of this publicly traded company. Your manager has asked you to analyze the company’s current financial position. Using the company’s most recent financial statements, complete the questions below. Once you complete the calculations, you will have enough information to answer the questions and write your paper.
Calculate and show your work for each of the following ratios:
Liquidity ratios
Current ratio
Acid-test or quick ratio
Receivables turnover
Inventory turnover
Profitability ratios
Asset turnover
Profit margin
Return on assets
Return on common stockholders’ equity
Solvency ratios
Debt to total assets
Times interest earned
Write a paper of 3–5 pages, and discuss the following:
Complete vertical and horizontal analyses for the 2 most recent annual reports.
Identify any areas, if any, that would cause concern in following U.S. GAAP.
How is this financial information useful to the management team in decision making?
Analyze the financial ratios, and describe what they reveal about the company’s current financial position.
What does this financial information reveal about the company’s overall performance?
Based on the information available, what recommendations would you have for continuous process improvements (e.g., investments in technology efficiencies, employee training, and so on)?
As a publicly traded company, what accounting ethical issues should the company consider?
All the instructions are in the attached file word document. thank you