Purpose
Analyzing and interpreting financial information is a critical business skill.
Task
INSTRUCTIONS
Task 1: Identify the users of financial statements and how they use information to make decisions.
- Make a list of the different stakeholders who use financial statements.
- For each stakeholder, explain how they use financial information to make decisions.
Task 2: Examine a balance sheet and income statement.
- Locate the company's balance sheet and income statement in the annual report.
- Review the key items on each statement.
Task 3: Analyze asset accounts.
- Identify the company's different types of assets.
- Analyze the company's asset accounts to determine the following information:
- What percentage of the company's assets are current assets?
- What percentage of the company's assets are non-current assets?
- What are the company's most valuable assets?
Task 4: Identify operating performance.
- Calculate the company's operating profit margin and net profit margin.
- Compare the company's operating profit margin and net profit margin to other companies in the same industry.
Task 5: Discuss changes in retained earnings.
- Calculate the change in retained earnings for the company.
- Identify the reasons for the change in retained earnings.
Submission
Your submission should consist of two parts:
- Executive Summary: A comprehensive report that addresses all the tasks outlined in the assignment.
- Excel File: Using the Excel template, complete the detailed spreadsheet containing all the required steps that should be used to support your executive summary.