Financial Statement Assignment Two

Financial Statement Assignment Two - explain the...

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ACCOUNTING 5100 Financial Statement Assignment 2 Fall 2009 MUST BE SUBMITTED IN CLASS ON October 27th Please go to the relevant financial statements for the year ending 2008 based on the first initial of your last name. When you have located the financial statements for both companies answer the following questions: 1. Compute the liquidity ratios (as shown in Appendix 5A) for both companies and discuss the difference in their ability to pay their obligations. (e.g. how do the ratios differ and based on the relevant financial statement accounts
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Unformatted text preview: explain the differences). 2. Compute the coverage ratios (except free cash flow) for both companies and discuss the difference in protection for long term creditors and investors. (e.g. how do the ratios differ and based on the relevant financial statement accounts explain the differences). 3. Based on liquidity and coverage ratios, which company would be a better investment? Last Name Company A-E Ann Taylor/Chicos F-J Target/Walmart K-O Gap/Abercrombie & Fitch P-Z OfficeMax/ Office Depot...
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This note was uploaded on 12/25/2009 for the course ACC 5100 taught by Professor Andrews during the Fall '09 term at Wayne State University.

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