questions:
(1) What business strategies are being pursued by each company?
(2) What are the key accounting policies and estimates for each company, given their industry
and business strategies?
(3) Do the financial statements reflect the underlying economic reality?
Each person will submit a written report of their findings on the above, not to exceed two
pagesof double‐spaced text.
In addition to the above, the report should incorporate the following items within the balance
sheet and the income statement:
THE BALANCE SHEET
Locate the company’s balance sheet.
Balance sheet date:
Page on which balance sheet appears:
The accounting equation is Assets = Liabilities + Stockholders’ Equity. Replacing the words in
the accounting equation with dollar amounts, give the company’s accounting equation at the end
of the current and prior years.
Assets = Liabilities + Equity
2018:
2019:
Calculate the company’s current ratio for both 2018 and 2019.
Show your computations.
2018:
2019:
Explain what information this ratio provides in 1-3 sentences.
Has the current ratio improved or worsened? Explain in 1-3 sentences
Calculate the company’s debt to total assets ratio (also called total debt to equity) for both 2018
and 2019. Show your computations.
2018:
2019:
Explain what information this ratio provides. Explain in 1-3 sentences
Has the ratio improved or worsened? Explain in 1-3 sentences
BUS 165A –Term Project
THE INCOME STATEMENT
Locate the company’s income statement.
What is the period covered by the income statement?
What is the page on which the income statement appears?
- Does the format of the statement more closely follow a single-step or a multiple-step format?
How can you tell? - What are the accounts that catch your attention compared to the previous year’s income
statement? - What could be the reasons of the increases or decreases from one year to another? Explain in
1-3 sentences - Could you please provide your input on how the company might increase its net income?
Explain in 1-3 sentences
Sample Solution
