Comparison and Evaluation

CCT 280 Financial Accounting

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Week 6 Discussion

Evaluate the company’s current and long term liabilities

REQUIRED: do the following activities and post your response to the questions below

Use the publicly-traded company you selected in week 1. You will continue to research and investigate the same company throughout the remainder of the course.

Citations: Cite your sources. Include links to your online sources at the bottom of your post. I should be able to click the link and find the source information you worked from.

For this assignment you will need the most recent set of financial. We are going to look liabilities on the balance sheet and the related notes.

Part 1 Current Liabilities

Of total liabilities, what percent is current?

What does current liabilities consist of (list the categories and amounts)?

What are the following at the end of each of the 2 most current years?

Total Current Assets

Total Current Liabilities

Current Ratio

Working Capital

Are there any footnotes dealing with current liabilities, and what do they tell us?

Part 2 Long Term Liabilities

Of total liabilities, what percent is long term?

What does long term liabilities consist of (list the categories and amounts)?

Does the company have bonds payable?
If so, do they have unamortized premium or discount?

Are there any footnotes dealing with long term liabilities, bonds and bond premium or discount, and what do they tell us?

Part 3 Comparison and Evaluation

Select one other company of your choice, find their most recent financial statements and one year prior (as above), and calculate the same ratios as above. Compare the second company with your company’s ratios and analysis from above in parts 1 and 2.

Which company appears to be doing a better job of managing and using liabilities to finance company operations?

Explain why you came to these conclusions (quantify your conclusions).

Part 4 Market and News

What was the company’s stock price at the end of week 6?

How much did the price per share go up or down in, both dollars and percent, from the stock price you reported in Discussion 1, at the beginning of week 1?

If you had purchased 100 shares of stock at the beginning of week 1 what would be your total gain or loss by the end of week 6?

What was the volume on the last trading day of week 6?

Company news regarding liabilities and debt: Find and report on one or two significant news items, market analysis reports or press releases about the company’s liabilities and debt. What influence do you think this information may have on investors either in the short term or long term?