Financial Statement Analysis

 

One basic method that an accountant can use to analyze the financial situation of a business is ratio analysis. This can be a useful tool no matter the type of legal structure of the business and regardless of whether ownership is public or private. To help assure the availability of the necessary data, though, this assignment will be focused solely on a publicly traded company.

As an overview, you will choose a publicly traded company from a list provided at the end of this assignment. Locate the company’s website, retrieve the latest company’s annual report from that site, calculate specific ratios for the latest two fiscal years, and respond to a limited number of analysis questions.

Please note that this entails far more than finding precalculated ratios from a website such as Yahoo! Finance or Google Finance. If you desire, you can use such a site for a reasonableness check on the results of your calculations, but any such comparisons should not be part of your resulting paper. Also, you might not match exactly to their figures anyway because those may include quarterly updates.

The paper should be three to four double-spaced pages (not counting the cover page and bibliography).

The font size should be 12-point and the type can be Times New Roman, Verdana, or Arial.

Paper should be properly cited using APA referencing style. This means that citations should be in a bibliography and in the body of the paper wherever you refer to or directly quote any information or terms from other sources.

For the section showing the ratio calculations, provide appropriate details regarding the formula used, the source of the data, and the resulting calculations. Although you are certainly welcome and encouraged to use Excel to complete these tasks, copying and pasting from Excel into the Word document is discouraged unless it can be done in a manner that is cosmetically appropriate.

The requirements for the ratio analysis section are as follows.

1. Compute the following for each of the two most recent years.

· Profit margin

· Return on shareholders’ equity

· Current ratio

· Interest coverage ratio

2. Document your work by properly citing items such as the following.

· The website for the company

· The web page link for the annual report

· The page number of the annual report

· Appropriate details of the calculations

The questions that should be addressed in the second section of the paper are as follows.

1. If you were an accountant for a potential vendor for this company, explain which of these ratios would be of the most interest to you. Would there also be a second ratio of interest to you?

2. If you were an accountant for a potential investor in this company, explain which of these ratios would be of the most interest to you. In your opinion, what other ratio or ratios beyond the ones listed above should also be considered in an investment context?

3. What is your overall opinion of this company based on the limited analysis completed via the four ratios? Feel free to mention any questions that you feel should still be considered in view of the ratios or the changes from one year to the next.

Please also consider these suggestions for your success on this assignment.

o If you choose a company from the list and have any trouble finding its website, the annual reports, or specific information, consider selecting a different company from the list instead.

o If the company has subsidiaries, be sure to use the consolidated financial statements.

o Be sure to use the financial statements rather than summaries elsewhere in the annual report.

List of companies (choose one):

Barnes & Noble, Inc.

Intuit Inc.

The Kroger Co.

Macy’s Inc.

Dell Inc.

Family Dollar Stores Inc.

Kodiak Oil & Gas Corp.

Tractor Supply Company

Verizon Communications Inc.

Sample Solution

Character hypothesis contends that the psyche is indistinguishable to the cerebrum and that psychological occasions are indistinguishable to mind occasions, at last the hypothesis illuminates realism in that everything is physical and to assist exactness it edifies material monism in trusting that just material substances and their states exist (K. T. Maslin, 2007, 65). To some degree it represents physicalism that people are completely material creatures that can be clarified utilizing in a perfect world finish material science which it is basic to call attention to don’t at present exist. The hypothesis in synopsis expresses that when we encounter something in our psyches it will be indistinguishable to an occasion in the cerebrum, for instance agony will be experienced in the meantime as the terminating of c-strands in the mind (Gareth Southwell, 2009, http://www.philosophyonline.co.uk). In this exposition I will additionally examine the diverse forms of the personality hypothesis, for example, type-type and token-token. What’s more, I will demonstrate that in spite of qualities, for example, clarifying why changes in the cerebrum through damage or generally go with modifications in the psychological working no variant of the personality hypothesis of brain are at last satisfactory because of its powerlessness to clarify the areas of musings or feelings, the subliminal or cognizant states, the qualia of encounters or the deliberate mental states with further investigate by the American thinker Kripke. There are two sorts of personality hypothesis and the first I will talk about is the sort type character hypothesis. This hypothesis trusts that any given mental state will be indistinguishable to a cerebrum state (K. T. Maslin, 2009, 68). This hypothesis attempts to distinguish the association of mental wonders with physical procedures in the mind. This hypothesis uses the disclosures of science as indistinguishable with the conceivable associations of mental states with cerebrum states, it expresses that the revelation of water as a component of oxygen and hydrogen and additionally the recognizable proof of physical marvels, for example, lightning with the example of electrical releases it can interface the experience and feeling of agony with the physical procedure in the mind and focal sensory system of the terminating of C-strands. The augmentation of this hypothesis places driving force on reductionism. This is the place it is contended that the implications of various mental and physical expressions precisely coordinate at their center ideas. This can be clarified as far as water and H20, two gatherings of wonders that show up numerically differentiating end up being one lot of existents and not two. At last they express that psychological and physical ideas will end up being a solitary sort of property depicted by two distinct phrasings. They trust the genuine idea of marvels can be given by the base to which it is decreased for instance agony can be diminished to the conduct of neurons in the focal sensory system. The second sort of personality hypothesis is the token-token character hypothesis. This accepts there are singular contrasts in individuals and creatures for mind and mental states (K. T. Maslin, 2007, 70). It expresses that while token mental states are indistinguishable to token physical states in various people they might be distinctive sorts of states, for instance torment may result in c-fiber incitement in one individual and z-fiber incitement in another (Dr Crawford, 2009, 3). I for one feel that this hypothesis attempts to clarify the distinctions in people minds in augmentation of the agony precedent I trust this hypothesis endeavors to clarify the diverse limit in torment for various people, while despite everything it might be the equivalent mental idea and cerebrum responses it takes a few people more while others less torment to trigger the incitement of their relating filaments whether it be c, x or y. Right off the bat I will examine the qualities of these hypotheses in clarifying that the psyche is at last the mind. Right off the bat it is a straightforward hypothesis, with less presumptions and just requiring to clarify the physical it makes itself progressively best and leaves less provisos open for investigate. It additionally expels the mind body connection issue, while before there was a prerequisite to disclose the psychological to physical causation the hypothesis expresses that the psychological is the physical so it just requires the physical to physical causation to be defended and not the non-physical with the physical. Another quality is given by logical revelation in the utilization of PET or MRI examines that demonstrate that explicit zones of the mind “light up” amid explicit mental capacities, a portion of these associations were distinguished by Borca and Wernicke over a hundred years previously the making of these cutting edge filtering procedures, this shows the association among mental and cerebrum states (K. T. Maslin, 2007, 70). Anyway likely the most incredible of all qualities to the character speculations is the capacity to clarify why changes in the mind because of damage, malady, sickness or generally results in the modification of mental working. The equivalent occurs along the developmental scale where increments in mind sizes brought about the expansion of scholarly limit. Since the psyche is the cerebrum when the cerebrum is changed the brain is altered (K. T. Maslin, 2007, 66). There were some prior complaints to this hypothesis also where investigates expressed that in light of the fact that psychological states are distinctive to mind states scientifically they should be extraordinary yet scholars immediately rejected this expressing “the non-synonymy of articulations flanking a personality sign does not naturally preclude reality of the character guarantee” at the end of the day on the grounds that the articulations or terms are diverse doesn’t implied they can’t in any way, shape or form have a similar personality. To take this further the scholars express that everything relies upon what you are alluding to, underneath the distinctive vocabulary the actualities identify with a solitary reality. The case of the morning and night stars bolsters this thought while the vocabulary and explicitly modifiers used to portray the star vary they eventually allude to a similar thing the planet Venus. This can likewise be connected to the absence of learning as dismissible evaluate utilizing Smarts idea expressing that you may think around a certain something yet nothing about another doesn’t mean they can’t in any way, shape or form be the equivalent, for instance you may think about water yet not perceive the compound of H20 but rather this doesn’t mean they are not the one and single substance (K. T. Maslin, 2007, 74). The qualities recognized in the aggregate character speculations demonstrate some genuine associations distinguished and supporting proof introduced in demonstrating the psyche is indistinguishable with the cerebrum. Anyway I accept there are some genuine and top notch blemishes in the contentions of the personality scholars that outcome in its definitive end. Right off the bat, the issue of the psychological and the spatial emerges (K. T. Maslin, 2007, 74). While it is simple using filtering, the area of cerebrum procedures can be effectively recognized amid different errands it is relatively difficult to distinguish the area of an idea or feeling, at the end of the day mental states are distinctive to mind forms.. Furthermore, there is a shortcoming in the association between mental states and mind forms on the intuitive dimension (K. T. Maslin, 2007, 76), to expand this we imply that things like the normal working of the sensory system and also some other framework in your body, for example, processing or breathing, these all have mind expresses that guide the body anyway they don’t have any connectable mental state since we don’t consider them in any capacity. This demonstrates a few things just have physical properties and consequently not all things have a psychological and a mind state essentially contradicting the personality hypothesis. Thirdly is the issue of qualia which implies the nature of a cognizant ordeal (K. T. Maslin, 2007, 79). While we may recognize what part of the cerebrum there is movement in amid a specific mental state its absolutely impossible we can get to the qualia of that encounter, for instance on the off chance that we had an agony we can distinguish this by the terminating of c-filaments in our mind state however it is highly unlikely we could recognize where that torment is, this implies while we encounter contemplations and sensations they should exist in different structures than simply physical properties of cerebrum states and procedures. One day science might have the capacity to recognize the qualia of an ordeal yet right now we can just distinguish the mechanical procedure and can’t clarify mindset or cognizance. Another evaluate of the character hypotheses accentuates the significance of dreams, convictions, wants and a lot progressively purposeful states that don’t exist, they have an illustrative substance and the scholars trust that cerebrum states are completely mechanical procedures in mind expresses that can’t forces any authentic substance, this requires the reaching of the determination that cerebrum states can’t be indistinguishable with deliberate mental states (K. T. Maslin, 2007, 80). The last principle scrutinize of all character hypotheses is because of Saul Kripke who utilized Descartes 6th intercession as motivation for his contention in expressing that since we can really envision mental states without mind states then they are not indistinguishable by any means, what something may look like isn’t basic to its being nevertheless its inward constitution is for instance something might be a reasonable fluid in appearance however it might have as much shot in being vodka as it is water the best way to distinguish it is to decrease it to its internal constitution H20 (K. T. Maslin, 2007, 90 and J. J. C. Brilliant, 2000, http://plato.standford.edu/sections/mind-character). The remote chance of event of mental states without the associating cerebrum states implies they can’t be indistinguishable. At last there is a ton of physical to mental methodologies and association that can’t be invalidated similarly they can’t be affirmed and this makes the determination that you ‘can’t find reality about reality based on what one does and does not know’ (K. T. Maslin, 2007, 67). In end

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