Business Finance Homework Help

Purpose of Assignment

The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.

Assignment Steps

Select one of the following companies:

• Symbol	Company Name	Industry
  BA	Boeing	Aerospace and defense
  CAT	Caterpillar	Construction and mining equipment
  CVX	Chevron	Oil & gas
  DD	Dow Chemical	Chemical industry
  DIS	Disney	Broadcasting and entertainment
  GE	GE	Conglomerate
  HD	Home Depot	Home improvement retailer
  IBM	IBM	Computers and technology
  INTC	Intel	Semiconductors
  JNJ	Johnson and Johnson	Pharmaceuticals
  KO	Coca Cola	Beverages
  MCD	McDonalds	Fast food
  MMM	Three M	Conglomerate
  MRK	Merk	Pharmaceuticals
  MSFT	Microsoft	Software
  NKE	Nike	Apparel
  PFE	Pfizer	Pharmaceuticals
  PG	Proctor and Gamble	Consumer goods
  T	AT&T	Telecommunications
  UNH	UnitedHealth Group Inc	Managed health care
  WMT	Walmart	Retail

Review the balance sheet and income statement in the company’s 2015 Annual Report.

Calculate the following ratios using Microsoft^® Excel^®:

• Current Ratio
• Quick Ratio
• Debt Equity Ratio
• Inventory Turnover Ratio
• Receivables Turnover Ratio
• Total Assets Turnover Ratio
• Profit Margin (Net Margin) Ratio
• Return on Assets Ratio

Analyze in 1,050 words why each ratio is important for financial decision making.