Reference no: EM1315848

Analysis of financial statement considering ratio analysis and giving recommendation.

Submit a two-page 600 to 700 word written report explaining how you would analyze the financial performance of a publicly traded corporation (Y Corporation) if you were provided with three years of Y Corporation's audited financial statements, and a listing of their industry's key financial and ratio performance for the same period. Define what specific information you would analyze and your general approach for analyzing and presenting this information. Add any caveats or disclaimers that would issue with the report. 
End of Mid-term Examination

ENCLOSURE 1

(The Balance Sheet and Income Statement for Spectrum, Inc. is presented below for your use in solving problem 3)

Spectrum, Inc.  BALANCE SHEET (000)
Cash	$500
Accounts receivable	1,500
Inventories	500
Current assets	2,500
Net fixed assets	5,000
Total Assets	$7,500

 

Accounts payable	1,200
Bank note	300
Total current liabilities	1,500
Long term debt	4,000
Common stock	300
Retained earnings	1,700
Total liabilities and owner\\'s equity	$7,500

 

Spectrum, Inc. INCOME STATEMENT (000)
Net sales	$8,500
Cost of goods sold	3,400
Gross profit	5,100
Operating expenses	2,900
Net operating income	2,200
Interest expense	580
Earnings before taxes	1,620
Income tax (34%)	551
Net income	$1,069