Financial Accounting

Prior to beginning work on this discussion forum, read Chapters 1 and 2 in your course textbook, Using Financial Accounting and Chapters 3 and 7 from the Warren Buffett Accounting Book: Reading Financial Statements for Value Investing.

Select a company of interest that trades on the New York Stock Exchange (NYSE). The annual report can be found on your selected company’s website, usually under the heading “Investor Relations.” Select a company that a fellow student has not already posted. You can also access Mergent OnlineLinks to an external site. and search for a company and access their financial reports, such as Annual Reports: Mergent Online tip sheetLinks to an external site..

Retrieve the latest two annual reports, then complete the following:

Calculate the current ratio and profit margin ratio for the latest two years and interpret the results. Please be sure to show your calculations. Then, explain what the ratios you calculated over the latest 2 years tell you.
Locate the Management Discussion and Analysis comments in the latest annual report and discuss the main points in your own words.
Locate the Auditor’s Report in the latest annual report, and discuss the opinion given and who conducted the audit.
Based on this initial quick review, provide your assessment of your chosen company.
Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly or credible resource, in addition to the text. Cite your sources in APA Style with in-text citations and a reference list. The Writing Center’s APA: Citing Within Your PaperLinks to an external site. and APA: Formatting Your References ListLinks to an external site. provide instructions and examples.