Financial statement analysis
2companiesfromthesameindustry classification and assignment
length of 500 words. Harvard referencing must be used,failure to do so will result in loss of marks.
You can use the
ratios that are mentioned in Chapter 18 (financial statement analysis) of your textbook. You need to select two ratios for each of the
following: (Other ratios can be selected
and is not limited to the list given below).
A total of 10 ratios would be sufficient for this assignment.
1. Evaluating the ability to sell inventory and collect receivables
The answer may address the following issues:
Possible causes of change
Implications of changes and the ratio analysis on financial and operational outcomes
Recommended course of action wherer atios are unfavourable
Students should choose ratios and other techniques that they deem appropriate.Avertical
analysis on the two company's Statement of Financial Performance and comment sonimplic ations of changes are expected.
Comment on the information found in both the company's cash flow statement(Chapter16). Based on you ranalysis what comments can you provide regarding both the company' s past performance and its future?
Priorperiod financial statements (toshowtrendsover2yearsormore)mayb euseful
in making your choice.
* I have chosen my reports alredy.