Description
Explain your findings (using the SEC.gov website as well as other resources): Johnson & Johnson and Caterpillar, Inc. (publicly traded company)
- Does each company appear to be able to pay their current obligations? Why or why not?
- How are the companies currently financed? This may be with common stock, preferred stock, bonds, leases, or any combination of them. Do you think the financing is appropriate for each company?
- Which method of depreciation does the publicly traded company use?
- For the publicly traded company explain how you would improve the distribution or product/service line and to whom you would offer it to, based on the financial health of the company. Stating there are no improvements is not acceptable.
- Do they have a code of ethics?
- Which company do you think would be the better investment and why?
Explanation & Answer
Attached.
Running Head: PUBLICALLY TRADED COMPANY
Publicly traded company
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PUBLICALLY TRADED COMPANY
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Publicly traded company
Question 1
Current ratios that are acceptable vary from one industry to another and basically range
from 1 to 3. High current ratios reveal the ability of a business to pay its obligations. A ratio that
is under 1 indicates that a company would not be able to pay off its obligations in a case where
they came due at the given point. This is an indication that the company is unhealthy. For bo...
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