Use real company’s financial statements to analyze the financial status of a company based on accounting metrics

Description

Instructions Learning Objective: Use the current ratio, inventory turnover, and days’ sales in inventory to evaluate business performance

Use real company’s financial statements to analyze the financial status of a company based on accounting metrics. Week 2 Problem Based Learning Assignment The Problem Based Assignment in this class will be an individual problem based learning assignment. You will play the role of an external accounting auditor that will be over the term of this course that will be analyzing the financial statements of a company. You will choose a real company to analyze the financial statements, compare the financial status of the company to the industry standards, and prepare a report for the management on your findings. This week you will analyze the company’s balance statement based off the information you learned about in the readings this week.

Find each of the below on the company’s 10k report. Include which report you found the information. Revenue Cost of Goods Sold (Or equivalent to COGS) Gross Profit Total Operating Expenses Operating Income Income Tax Expense Depreciation Net Income Calculate the Ratios below (Show your work): Calculate the Current Ratio. Calculate the Inventory Turnover Ratio. What accounting method does the company use? Do they state why they use that method? This week you will create a 1 – 2 page professional report that summarizes your findings based on the financial research.