Study the Lecture Content and Lecture Materials & Resources for this module.

Choose two public companies and search the financial statements (Income Statements, Balance Sheet, and Statements of Cash Flow; suggestion Yahoo Finance). For these two companies, briefly describe the history and then apply the following financial ratios:

1. 1. Current Ratio = Current Assets / Current Liabilities
   2. Acid-Test Ratio = Current Assets Inventories / Current Liabilities
   3. Average Collection Period = Accounts Receivable X 365 / Annual Credit Sales
   4. Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
   5. Debt-To-Net-Worth Ratio = Total Debt / Shareholders Equity
   6. Long-Term-Debt-To-Total-Capitalization Ratio = Long Term Debt / Total Capitalization
   7. Gross Profit Margin = Sales Cost of Goods Sold / Sales
   8. Net Profit Margin = Net Profit After Taxes / Sales
   9. Rate of Return on Common Stock Equity = Net Profits After Taxes Preferred Stock Dividend / Shareholders Equity

• Contribute a minimum of 5 pages. It should include at least 5 academic sources, formatted and cited in APA.