Reference no: EM132491606 , Length: 6

Company Overview
Provide a brief overview of the three companies (at least two pages). What industry is it in? What are its main products or services? Who are its competitors? Where is the company located?

Ratio Analysis

Question 1: Calculate the current ratio, quick ratio, gross profit percentage, inventory turnover, accounts receivable turnover and asset turnover ratios for all three companies for the current year.

Note: Cash includes cash and cash equivalents and short term investments.

Question 2: Explain how the ratio is calculated and discuss and interpret the ratios that you calculated.

Question 3: Discuss potential liquidity issues based on your calculations of the current and quick ratios.

Question 4: Are there any factors that could be erroneously influencing the results of the ratios?

Question 5: Discuss liquidity issues of the three companies.

Comparison of Accounting Methods

In your paper, ascertain from the notes of the financial statements the following:

Question 6: Explain the difference between the allowance method and the direct write off method for accounts receivable. Document the method used for each of the three companies.

Question 7: Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document the method used for each of the three companies.

Question 8: Explain the difference between LIFO and FIFO and document the method used for each of the three companies.

Question 9: Explain the different categories of intangible assets and document the method used for each of the three companies.