Based on the information obtained from the two companies' income statements as well as the background information,
Question:
Based on the information obtained from the two companies' income statements as well as the background information, you are to compare the performance of the two companies using financial statement analysis. From the BUSI 1043 course that you took in the past at Yorkville University, you know there are at least the horizonal analysis, the vertical analysis and the ratio analysis that you can perform. You have been asked to discuss any other issues that you believe are relevant to the investment decision and make a recommendation to Big Spenders Inc. for whether your target would be a good investment.
Big Spenders Inc. would likely be a long-term client of FINACC LLP if you could once again gain their trust from this project. The Manager would like you to prepare the final report and trust that your analysis will be throughout and completed as always.
Auditing Cases An Interactive Learning Approach
ISBN: 978-0132567237
5th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt