|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).
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.