Controls Project_Part_3

Controls Project_Part_3 - financial statements of the...

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financial statements of the company available reflecting the percentage changes. Discuss the most notable changes. Discuss how you would define materiality on this engagement considering only quantitative factors. Presenter 4: Ratio analysis: profitability, leverage, liquidity, and activity ratios graphs of trends and table for comparisons (opinion of management and corporate governance?) The powerpoint presentation will include ratio slides categorized by type of ratio (i.e., profitability, leverage, liquidity, and activity). For example, on the slide(s) with the title Liquidity Ratios there will be three graphs. Each will have 4 or more years and time will be shown on the x axis of each graph. The three graphs will be current ratio, acid or quick ratio, and working capital. Discuss their liquidity and its implications if negative and integrate in that discussion any loan covenants that involve liquidity and insights from the Statement of Cash Flows. Note, many profitability ratios exist. Include EPS, ROE (if they have debt financing), ROA, and P/E. If P/E varies considerably from P/cash flow, discuss this; otherwise, ignore P/cash flow. Each category of ratios provides a window on the business. Identify and discuss business risks
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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Controls Project_Part_3 - financial statements of the...

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