Question: Develop a Table of Contents for your final paper that reflects the flow, logic, and structure of the research paper. ( Due Week 3 )

  1. Develop a Table of Contents for your final paper that reflects the flow, logic, and structure of the research paper. (Due Week 3)
  2. Obtain the following information for both the selected company and the benchmark company:

The steps in preparation of financial analysis report include the following:

  1. Obtain the balance sheet, income statement, and statement of cash flows for the past 2 years for Amazon. Download or read the firms annual report.
  2. Conduct a comparative analysis, focusing on liquidity of Short-Term Assets, Long-term Debt paying Ability, Profitability, Asset Utilization/Management Efficiency and Market measures. Review the 3 years of ratios for the selected company, compared to the benchmark companys ratios, and determine what the ratios reveal about the financial health of the selected company.
  3. Utilizing the information from the reports obtained in step #4 above:
  4. Calculate 2-3 ratios per financial diagnostic category" given in the table below.
  5. Place your ratio calculations in the table for your selected companiesprimary company and benchmark competitor.
  6. The table below can be used and modified as needed. It is only offered as an illustration.

Financial Diagnostic Categories

Amazon

1. Liquidity of Short-Term Assets

  • Current Ratio
  • Cash Ratio
  • Quick Ratio

2. Long-Term Debt-paying Ability

  • Debt Ratio
  • Debt-equity Ratio
  • Times Interest Earned

3. Profitability

  • Net Income / Sales (Profit Margin)
  • Net Income / Assets (ROA)
  • Net Income / Shareholder Equity (ROE)

4. Asset Utilization / Management Efficiency

  • Total Asset Turnover
  • Inventory Turnover Measures
  • Accounts Receivable Turnover

5. Market Measures

  • Price / Earnings Ratio
  • Earnings per Common Share
  • Dividend Payo

Amazon.pdf

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