| June 8, 2016

Discussion Forum 1

In Module 2 you examine balance sheets to determine how different firms finance investment in assets. For this discussion activity we look further at financial statements to analyze and compare the financial positions of firms competing in the same industry.

Note: Before beginning the discussion activity for Module 2, be sure to study Chapter 9, “Analysis of Financial Statements.”

Discussion Activity

Choose two firms that compete within the same industry (e.g., J.C. Penney and Sears, Johnson & Johnson and Merck, Ford and GM, etc.).
Go to each firm’s Web site, and then access and download their annual reports (financial statements).
Using the accounting data from the firms’ financial statements and the ratios studied in Chapter 9 of the textbook, calculateallratios for each firm (liquidity ratios, activity ratios, profitability ratios, leverage ratios, and coverage ratio).
Analyze and compare your calculations for the two firms.
In Discussion Forum 1, report to the class on your figures and analysis by the date indicated in the course Calendar. Please title your thread “Ratio Analysis/[Your Name].” Be sure to include the Web addresses (URLs) of the firms whose Web sites you visited.
Read and comment on at least two of your classmates’ postings by the date indicated in the course Calendar.

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