Description
Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products.
Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past.
Research the company on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows.
Develop a minimum 500-word examination of the financial statements and include the following:
- Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year?
- Explain the relevance of changes in net income to investors.
- Determine the ending balance in shareholders' equity. Why would organizations such as labor unions be interested in this?
- Determine the total value of assets.
- Discuss the relevance of the total value of assets to potential creditors and why this is important.
- Compute the return on assets. Discuss the relative profitability of the company based on your results.
- Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results.
- Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company.
- Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making?
Show your work in Excel.
Complete calculations/computations using Excel.
Include the four financial statements along with your assignment.
Explanation & Answer
here we goLemme know in case of anythingAll the best and Goodbye
Running head: DEXCOM FINANCE
1
Dexcom Finance
Name
Institution
Date
DEXCOM FINANCE
2
Dexcom Finance
The company had a net income of -50200 in the year ended 31st December 2017. The
loss decreased significantly from the 65200 posted in the previous year. However, one may
argue that this is not a great performance as the business is still posting losses. The
management has to come up with better policies and long term strategies. Besides, the
performance may signal hard economic or financial times for any business; hence a change in
income is vital for any investor. An increase in earnings indicates that a firm is performing
well while the contrary shows a decrease. Daxton investor may hold on to the share due to an
improvement in the earnings. A loss decreases the shareholders’ equity whereas a profit
results in wealth creation.
There was an increase in the shareholders’ equity. The total shareholders’ equity
increased from 283800 in 2016 to 419400 in 2017. This was contributed by an exponential
increase in the capital surplus from 905700 to 1039700 from 2016 to 2017 respectively. An
increase in the equity value indicates that the business is generating wealth for its
shareholders. The labor unions would demand better pay for the employees of the company.
It is illogical to argue that the firm has posted losses and cannot give its employees a salary
increment. The unions would say that they have to be paid well.
DEXCOM FINANCE
3
The business has total assets amounting to 904100 in 2017 being an increase from the
402800 posted i...
Review
Review
