Question: Considering the following discussion prompt, respond with an initial post as a new thread in this discussion board forum. The post must be a minimum

Considering the following discussion prompt, respond with an initial post as a new thread in this discussion board forum. The post must be a minimum of 500 words in length and demonstrate course-related knowledge. You may also use outside resources in the post, properly cited in APA.

Prompt: Obtain the most recent annual report contained in the Form 10-K for a service company and a merchandising company either from an internet search of the companys website, or from the Securities and Exchange Commissions (SECs) Electronic Data Gathering, Analysis and Retrieval (EDGAR) system. (A publicly traded company is required to file a Form 10-K with the SEC annually. See the instructions for accessing the EDGAR database via the internet here.)

Requirements:

  1. Prepare a short summary that describes the businesses, and the services/products sold by each of them.
  2. Compare and contrast the financial statements for the companies for the most current year for the following items:
    1. Contents of the balance sheet, income statement, and the footnotes (disclosures).
    2. The profit and liquidity ratios. Refer to the ratios discussed in Chapter 5. Calculate and explain all ratios for each of the businesses. Explain the effect of inventory on the ratios of the merchandising company. Review the footnote (disclosure) related to inventory. Describe the contents of inventory footnote.
    3. Which set of financial statements are most complex? Defend your opinion.
    4. Based on your analysis and review of the two companies, in which company would you most likely invest? Defend your choice. Please make sure that your discussion is comprehensive. You may choose two companies whose stock is not publicly traded (non-public companies do not have to file a Form 10-K with the SEC), if their financial statements are accessible on the internet. Please disclose the websites that you accessed to locate the financial statements of your non-public companies.

This is a discussion, please post at least 500 words including the reference by answering the questions mentioned above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!