Unformatted text preview: the effect of managerial strategies (for example, using liberal credit terms or holding huge amounts of inventory to increase sales vs. no credit or very low inventories to reduce costs; investing in marketable securities vs. expanding the business with your excess cash; borrowing a lot versus issuing shares when funds are needed; paying out dividends to make certain shareholders happy vs. using excess cash for growth). Look at the footnotes and management’s discussion of operations and president’s letter to shareholders at the beginning of the annual reports for clues). 5) Compare 2 companies in different industries for the same year. See how industry differences (for ex. a capital industry vs. non-capital intensive industry; retail firm vs. manufacturing firm etc. lead to differences in the ratios and explain why. At least 2 groups should choose each topic. Step by step instructions will be under assignments related to this project. Have fun...
View Full Document
- Fall '12
- Balance Sheet, 3 years, 2 years