Financial Statement Analysis DB, business and finance homework help
There are 4 parts to this. Please read each section
Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.
You do not need an intro or conclusion for this.
Primary Task write 350–400 words
Library Research Assignment
There are 4 primary financial statements used in financial statement analysis. They are the balance sheet (or statement of financial position), the income statement (or the statement of operations), the statement of changes in shareholders’ equity, and the statement of cash flows. For this activity, you should choose at least 2 of these statements and discuss the following:
- What is the purpose of this financial statement?
- What are its primary components, and what do they represent?
- Who are the primary users of this statement, and how is it generally used?
- What GAAP (Generally Accepted Accounting Principles) are employed in its construction?
- How does this financial statement relate to the other financial statements?
Use the Library and other resources to research financial statements. Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.
Primary Task Response: write 250–300 words
There are basically 5 categories of financial statement analysis that is employed to assess the health of companies related to their financial performance. They are generally classified as liquidity, efficiency, debt, profitability and market-based ratios.
Select 1 of the categories, and discuss the following:
- What does each ratio in the category attempt to measure?
- What individual ratios does it employ?
- List at least 3.
- Discuss each of the ratios that you have identified.
- How is each calculated?
- What does each measure?
- What is the general rule of thumb associated is ratio?
- How do you know if a ratio is improving or deteriorating?
- And what are some of the weaknesses or limitations of each ratio?
Primary Task Response: If a company grows too fast, it can find itself without access to the resources it needs to meet its obligations. If it grows too slowly, it may find itself missing strategic as well as tactical opportunities. Calculating and understanding a firm’s optimal or sustainable growth rate is critical to the goal of maximizing shareholders’ wealth and developing an optimal capital structure. You senior analyst has asked you to do some research in this area and to share what you have learned with the other junior analysts on staff through the company discussion board. She has asked you to research and address the following topics in your posts:
- What is sustainable growth, and why is it important to calculate and understand this rate?
- What is the sustainable growth equation, what are its components, and how is it calculated?
- What are the consequences of growing a firm too fast or too slow?
- If a company grows too fast, what funding alternatives are generally available?
- If a company grows too slow, what steps should it take to maintain its stock price?
Primary Task Response: write at least 3 paragraphs on at least 1 of the following topics:
- What are some examples of major ethical breaches in the recent past that have led to increased scrutiny in the field of financial reporting and analysis? Why are they important to a firm’s stakeholders and the public at large?
- What is the Sarbanes-Oxley Act, and what are some of the elements of this Act that were designed to protect the integrity of the financial statements prepared and disseminated by publicly traded companies?
- What is the SEC, and what is its role in protecting the integrity of financial statements prepared and disseminated by publically traded companies?