• Choose two (industry-related) public companies and search their financial statements (Income Statements, Balance Sheet, and Statements of Cash Flow; suggest Yahoo Finance). For these two companies, briefly describe their history and then analyze their results using the following financial ratios (in a 3-5 page paper): Current Ratio = Current Assets / Current Liabilities Acid-Test Ratio (Quick Ratio) = Current Assets – Inventories / Current Liabilities Average Collection Period (A/R Turnover) = Accounts Receivable X 365 / Annual Credit Sales Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory Debt-To-Net-Worth Ratio = Total Debt / Shareholder’s Equity Long-Term-Debt-To-Total-Capitalization Ratio = Long Term Debt / Total Capitalization Gross Profit Margin = Sales – Cost of Goods Sold / Sales Net Profit Margin = Net Profit After Taxes / Sales Rate of Return on Common Stock Equity = Net Profits After Taxes – Preferred Stock Dividend / Shareholder’s Equity Make sure to comment on the reasons why these companies are similar or different and which company, based on your analysis, is performing better.
• By using ratios, you will be able to analyze the information presented by not using the numbers, but you have to make sure you are explaining the 'why' behind the numbers. You can present these calculations in a table and then discuss the results in your essay. Use an Essay Format Use this Sample APA Outline Download Sample APA Outline for your Essay You must present your writing double-spaced, in Times New Roman, Arial, or Courier New font, with a font size of 12. Pay attention to grammar rules (spelling and syntax). Your work must be original and must not contain material copied from books or the internet. When citing the work of other authors, including citations and references use APA style to respect their intellectual property and avoid plagiarism. Remember that your writing must have a header or a cover page that includes the name of the institution, the program, the course code, the title of the activity, your name and student number, and the assignment's due date.

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The two public companies that I have chosen to analyze are Apple Inc and Microsoft Corporation Apple Inc is an American multinational technology compa... View the full answer