Financial statement analysis

Assignment Help Accounting Basics
Reference no: EM13150245 , Length: 272 words

"Financial Statement Analysis" Please respond to the following:

From the first e-Activity, compute the percentage difference between the two companies with respect to operating, investing, and financing activities, and interpret the results. Discuss how this analysis has affected your investment decision made in Week 6. 

Walmart and Target received my attention as I shop frequently there. It was found by oneself that:

Walmart Target
Current Ratio=Current Assets/Current Liabilities 

0.88
0.91
Asset Turnover= Revenue/(Initial Asset+Final Assets/2) 2.29 1.63
Rate of Return on Common Stock Equity= Net Income-Preferred Dividend/Average common stockholders equityx100 21.77 

12.09
Book Value per share=total common stockholders equity/number of common shares 23.59 25.64

Based on this information, investing in Walmart seems to be a more reasonable choice as Walmart has a better asset turnover when it comes to its revenue and assets. As well as a good rate of return on common stock equity. Walmart raises its dividend virtually every year, and it has more than doubled its dividend. It is to my understanding that Walmart operates domestically as well as internationally.  

Reference no: EM13150245

Questions Cloud

How many expect to have tasted either coke or pepsi : Assume that 80% of the adult population in the United States has tasted either Coke or Pepsi. For a sample of 250 adults, How many would you expect to have tasted either Coke or Pepsi? Whats the variance?
Define an astronaut''s spacesuit has a pinhole leak : An astronaut's spacesuit has a pinhole leak. If the spacesuit contains air of normal composition (78% nitrogen and 21% Oxygen),
Find the energy of a photon of light : Find the energy of a photon of light if the wavelength of the light wave is 6.88 x 10-7 m.
Adjusted basis in the preferred stock : At the time of the distribution, the common stock was valued at $90 per share, and the preferred stock was valued at $20 per share. What is Kira's adjusted basis in the preferred stock, and when does her holding period begin?
Financial statement analysis : Financial Statement Analysis" Please respond to the following:From the first e-Activity, compute the percentage difference between the two companies with respect to operating, investing, and financing activities, and interpret the results. Discuss ho..
Explain alterations in starling forces contribute : How is blood pressure regulated? Your answer should include local control mechanism as well as control from the endocrine and nervous systems. What kind of feedback is involved?
Considerations related to current assets and liabilities : Please demonstrate your knowledge of current assets and liabilities by discussing: Dependencies between current assets and current liabilities either through balance creations or balance changes. Are there any special management considerations relate..
What are the four starling forces : Describe the how the autonomic nervous system (sympathetic and parasympathetic) controls cardiac output. Be sure your answer includes the correct neurotransmitters and their target cells as well as ion movement, membrane polarity, and effect.
Journal entry at date of bond purchase : On January 1, 2009, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40. Prepare the journal entry at the date of the bond purchase.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Transactions with related entities-some

It is common for an entity to have transactions with related entities-some of which are fully owned, some of which share common ownership but are not otherwise related, and others wher ownership is small but there is control.

  What is the effect of dixons proposed change

Is the proposed change in asset life unethical, or is it simply a good business practice by an astute president?

  Case study sections

Focus on the Case Study sections VIII-XV, pp. 20-39 and use your knowledge of the Motiwalla & Thompson textbook, chapters 5-9 inclusive and at least 6 academically sound external sources, to develop your report.

  Compute the change in operation, income

Compute the change in operating income if liberty company eliminates Dept. C and doubles the sales in Dept. T without increasing fixed costs.

  How should clyde treat payment on his 2010 tax return

This is a tax research problem - Clyde had work for many years as the chief executive of Red Industries, and had also been a major shareholder. Clyde and the company had a falling out, and Clyde was terminated.

  Population when performing audit procedures

What is the importance of defining the population when performing audit procedures? How will this affect the sample size? How will incorrectly defining the population affect the sampling unit? - answer 100-150 words.

  Tax reduction amount for donation

Allison is the sole shareholder of Destiny Corporation, which operates a travel agency for business travelers. Allison would like the corporation to donate some used computers to a local private school dedicated to the education of young ladies.

  Depreciation rule-profit margin of business

Is Choi's ruling an ethical violation, or is it a legitimate decision in computing depreciation? How will Choi's new depreciation rule affect the profit margin of her business?

  Current provision for income taxes

Didde's effective income tax rate is 34% for 2011. What amount should Didde report in its 2011 income statement as the current provision for income taxes?

  Net of depreciation-consolidated balance sheet

At what amount should the equipment (net of depreciation) be included on the consolidated balance sheet dated December 31, 2009?

  What elements of consistency should be considered

What criterion must be met for true comparability?

  Current and temporal methods of translation

Which of the following items is normally translated the same way under both the current and temporal methods of translation?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd