Discussion Question Business

  • Use the Internet to research an annual report of a retail company. Then, imagine you are an investor or creditor and suggest the ratios that you believe would provide an investor or creditor with the most important information needed to make accurate predictions about the company’s financial condition.
  • When analyzing a company, is it more important to compare the ratios to competitors or to the company’s previous history? Provide a rationale for your response. Note: You must provide a link or instructions to the researched report.
  • Discuss why it is just as important to analyze financial statements as it is to prepare them.
  • Discuss how business owners and leaders can use financial statement ratios to make decisions.
 
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