II. Analyzing Inventories
1. If your company lists inventories in its balance sheet, what percentage of total assets does inventories represent for each of the last three years?
2. If your company lists inventories, what inventory costing method is applied to U.S. inventories?
3. Ratio analysis
a. What does the inventory turnover ratio measure in general?
b. If your company reports inventories, compute the ratio for the last three years.
c. What do your results suggest about the company?
d. If available, find the industry ratio for the most recent year, compare it to your results,
and discuss why you believe your company differs or is similar to the industry ratio.
III. Analyzing Long-Lived Assets
On individual basis, each team member should write a short report answering the following questions about the selected company.
1. List the accounts and amounts of the company’s long-lived assets (land, buildings, equipment, intangible assets, natural resources, and/or other) for the last three years. What is the percentage of each to total assets (rounded to two decimal places)?
2. What cost allocation method(s) and estimates does the company use for each type of long- lived asset?
3. What percentage of the property, plant, and equipment (rounded to two decimal places) has been used as of the end of the most recent year? (Accumulated Depreciation/Cost)
4. Ratio analysis
a. What does the fixed asset turnover ratio measure in general?
b. Compute the ratio for the last three years. Round your answers to two decimal places.
c. What do your results suggest about the company?
d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs or is similar to the industry ratio.
IV. Analyzing Liabilities
On individual basis, each team member should write a short report answering the following questions about the selected company.
1. List the accounts and amounts of the company’s current liabilities for the last three years.
2. Compute the accounts payable turnover ratio for the last two years.
3. What is your company’s working capital for the last three years? Any concerns?
4. List the accounts and amounts of the company’s long-term liabilities for the last three years.II. Analyzing Inventories
On individual basis, each team member should write a short report answering the following questions about the selected company.
1. If your company lists inventories in its balance sheet, what percentage of total assets does inventories represent for each of the last three years?
2. If your company lists inventories, what inventory costing method is applied to U.S. inventories?
3. Ratio analysis
a. What does the inventory turnover ratio measure in general?
b. If your company reports inventories, compute the ratio for the last three years.
c. What do your results suggest about the company?
d. If available, find the industry ratio for the most recent year, compare it to your results,
and discuss why you believe your company differs or is similar to the industry ratio.
III. Analyzing Long-Lived Assets.
On individual basis, each team member should write a short report answering the following questions about the selected company.
1. List the accounts and amounts of the company’s long-lived assets (land, buildings, equipment, intangible assets, natural resources, and/or other) for the last three years. What is the percentage of each to total assets (rounded to two decimal places)?
2. What cost allocation method(s) and estimates does the company use for each type of long- lived asset?
3. What percentage of the property, plant, and equipment (rounded to two decimal places) has been used as of the end of the most recent year? (Accumulated Depreciation/Cost)
4. Ratio analysis
a. What does the fixed asset turnover ratio measure in general?
b. Compute the ratio for the last three years. Round your answers to two decimal places.
c. What do your results suggest about the company?
AF210 SPRING 2023 Group Project
d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs or is similar to the industry ratio.
Discuss any patterns across the companies that you as a team observe. Then, as a team, write a short report comparing and contrasting your companies.
IV. Analyzing Liabilities.
On individual basis, each team member should write a short report answering the following questions about the selected company.
1. List the accounts and amounts of the company’s current liabilities for the last three years.
2. Compute the accounts payable turnover ratio for the last two years.
3. What is your company’s working capital for the last three years? Any concerns?
4. List the accounts and amounts of the company’s long-term liabilities for the last three years.
