Reference no: EM132604726

Question 1: Obtain the most recent annual report for two companies in the retail grocery store industry -Kroger and Safeway. Kroger is your bases company. The reports should contain at least three years of income statement data and two years of balance sheet data.

Question 2: Analyze at least 3 -5 (three - five) items on the income statement for your base company that would be important to an investor and discuss whether your company's performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify and expand in writing an answer.

Question 3: Analyze at least 4-6 (four- six) items on the balance sheet for your base company that would be important to an investor and discuss whether your company's performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify and expand in writing on the answer.

Question 4: Analyze your base company's investing and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that your company appears to be employing.

Question 5: Identify 2 (two) items not included in (or derived from) the financial statements that would be important to someone considering whether to invest in your company. Discuss the reasons for believing that these two items about the company would be important in making an investment decision.

Question 6: Compare Kroger, your base company's financial statements with those of the second company; Safeway. Both companies are in the retail grocery industry. The purpose for undertaking the financial analysis is for an investor. There is a need to make a decision to invest in one of the two companies. Which company would be recommended? Explain Why?

Question 7: Recommend one of the two companies. The recommendation must include a discussion of some financial issues observed in the analysis process. Other non-financial factors like management, marketing strategies, technology advancements, sustainability, etc., can be inluded in the written justification for making a decision)