Explain the relevance of changes in net income to investors

Assignment Help Accounting Basics

Reference no: EM132206025

Question: Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials

Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past.

Research the company on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows.

Develop a minimum 700-word examination of the financial statements and include the following:

• Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year?

• Explain the relevance of changes in net income to investors.

• Determine the ending balance in shareholders' equity. Why would organizations such as labor unions be interested in this?

• Determine the total value of assets.

• Discuss the relevance of the total value of assets to potential creditors and why this is important.

• Compute the return on assets. Discuss the relative profitability of the company based on your results.

• Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results.

• Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company.

• Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making?

Show your work in Microsoft Word or Excel.

Complete calculations/computations using Microsoft® Word or Excel.

Include the four financial statements along with your assignment.

Format your assignment consistent with APA guidelines.

Reference no: EM132206025

Questions Cloud

Complete the purchasing document matrix : Your team is required to train new procurement specialists and part of the training is to provide a reference guide that includes all relevant purchasing.

A program to generate a random noise of amplitude : Write a MATLAB program to generate a random noise of amplitude 0.2V_pp add it to a generated low frequency signal of 100Hz.

Explain the elements of business negotiations : You are a business negotiations consultant who has been hired by a start-up company to create a training guide for its newly hired procurement specialists.

Write the appropriate matlab statements for each step : Test your solution by writing a MATLAB function on your computer and submit a print copy/email attachment of your code.

Explain the relevance of changes in net income to investors : Explain the relevance of changes in net income to investors. Determine the ending balance in shareholders' equity. Why would organizations such as labor unions.

Why cost accounting is referred to as managerial accounting : Why Cost accounting is often referred to as "managerial accounting". What ways that a company uses cost accounting, and how it uses financial information.

What is the name of the software package : How do computers assist in the budget planning process? Software to assist companies with the budgeting process is available form a variety of sources.

Compute the cumulative product of the elements in a vector : Write a MATLAB function which computes the cumulative product of the elements in a vector.

Write a matlab function that adds up a specified number : Write a MATLAB function named sum_highest that adds up a specified number of the the largest values in a list of numbers.

User Account

All Pages