Financial statement analysis please respond to the

Assignment Help Accounting Basics
Reference no: EM13375432 , Length: 272 words

"Financial Statement Analysis" Please respond to the following:

From the first e-Activity, compute the percentage difference between the two companies with respect to operating, investing, and financing activities, and interpret the results. Discuss how this analysis has affected your investment decision made in Week 6. 

Walmart and Target received my attention as I shop frequently there. It was found by oneself that:

Walmart Target
Current Ratio=Current Assets/Current Liabilities 

0.88
0.91
Asset Turnover= Revenue/(Initial Asset+Final Assets/2) 2.29 1.63
Rate of Return on Common Stock Equity= Net Income-Preferred Dividend/Average common stockholders equityx100 21.77 

12.09
Book Value per share=total common stockholders equity/number of common shares 23.59 25.64

Based on this information, investing in Walmart seems to be a more reasonable choice as Walmart has a better asset turnover when it comes to its revenue and assets. As well as a good rate of return on common stock equity. Walmart raises its dividend virtually every year, and it has more than doubled its dividend. It is to my understanding that Walmart operates domestically as well as internationally.  

Reference no: EM13375432

Questions Cloud

Instructions write a review of beverly silvers forces of : instructions write a review of beverly silvers forces of labor. since the review will be short you need to think
Tenco a domestic corporation manufactures tennis rackets : tenco a domestic corporation manufactures tennis rackets for sale in the united states and abroad. tenco owns 100 of
Purpose covers a range of important cost and management : purpose covers a range of important cost and management accounting topics. the main purpose of this assignment is to
Estimating elasticity of demand please respond to the : estimating elasticity of demand please respond to the followingfrom the e-activity analyze the elasticity of demand for
Financial statement analysis please respond to the : financial statement analysis please respond to the followingfrom the first e-activity compute the percentage difference
Which cost flow assumption give lower taxes during : which cost flow assumption give lower taxes during inflation lifo or
Assume that the low-calorie frozen microwavable food : assume that the low-calorie frozen microwavable food company from assignments 1 and 2 wants to expand and has to make
Want to get a quote on this discussion question early in : want to get a quote on this discussion question. early in the film groundhog day phil connors was engaged to a certain
1 using the appropriate interest table answer each of the : 1 using the appropriate interest table answer each of the following questions. each case is independent of the others.a

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the variable overhead variance

Compute the fixed overhead variance. (Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input the amount as positive value. Do not round your intermediate calculati..

  Adjusting entry for doubtful accounts

Sales revenue for 2008 was $1,000,000 of which 80% was on credit. Historical data indicates that 3 percent of gross credit sales prove uncollectible. (As such 3% of gross credit sales is their accounting policy) What should the balance in the allo..

  Operating income and average contribution margin ratio

If 15,000 units of the new product could be sold at $16.00 per unit, and the company's other business did not change, calculate the company's total operating income and average contribution margin ratio. (The new product adds an additional $37,800..

  Material participant in the restaurant activity

Maria, who owns a 50% interest in a restaurant, has been a material participant in the restaurant activity for the last 20 years. She retired from the restaurant at the end of last year and will not participate in the restaurant activity in the fu..

  What are total fixes expenses

if the contribution margin ratio is 70% ,targeted operating income is $86000 and targeted sales in dollars is $480,000. what are total fixes expenses?

  Revenue or payroll cycle at your organization

Describe the revenue or payroll cycle at your organization? What source documentation is used in the revenue and payroll cycles at your organization? - answer 150-200 words.

  Budgeted and actual amounts

Ranger Company produces men's shirts. The following budgeted and actual amounts are for 2010:

  Financial statements if correct adjusting entry is not made

A transportation company is paid in the month of May for delivering a truckload of goods, although it actually delivers it in June. What effect will there be on the financial statements if the correct adjusting entry is not made?

  Discount on one-half of the bonds was amortized

Oct. 31 Sold one half of the wilson company bonds at 97 plus accrued interest. the broker deducted $400 for commissions, ect. remitting the balance. Prior to the sale, $450 of discount on one-half of the bonds was amortized, reducing the carrying ..

  Amount reported for operating expenses

During 2010, Burlington Company incurred operating expenses amounting to $600,000, of which $550,000 was paid in cash; the balance will be paid in January 2011. On the 2010 income statement of the company, what amount should be reported for operat..

  Calculate the cost of ending inventory

Compute the cost of the ending inventory under the average-cost method, assuming there are 300 units on hand. (Round average cost to 2 decimal places, e.g. 3.25. Use this rounded amount to calculate cost of ending inventory.)

  Preparation of a work sheet, financial statements

All adjustments affect one balance sheet account and on income statement account. For each of these situations,  Preparation of a Work Sheet, Financial Statements, and Adjusting and Closing Entries.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd