Learning Goal: I’m working on a accounting discussion question and need the explanation and answer to help me learn.
Financial Statement Analysis
Discussion Question:
Q- Financial Ratios
Select one type of creditor or investor from the list below:
- vendor (supplier of goods or products)
- bank providing short-term financing
- bank providing long-term loan (10 years or more)
- bond investor
- investor in common stock
Discuss at least three specific financial ratios that creditors or investors would be most interested in when analyzing financial statements, and why.
Directions:
- Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
- Your initial post should address all components of the question with a 600-word limit.
Learning Outcomes:
- Examine the components of the balance sheet and income statement.
- Analyze financial statements using vertical and horizontal analysis, liquidity, and profitability ratios.
- Evaluate cost centers, profit centers and investment centers and understand how a balanced scorecard aligns performance with organizational goals.
Readings
Required:
- Chapter 16 in Managerial Accounting
- Ding, K., Peng, X., & Wang, Y. (2019). A machine learning-based peer selection method with financial ratios. Accounting Horizons, 33(3), 75–87.
Recommended:
- Module 14 PowerPoint Presentation
- Corporate Finance Institute (2015-2021). Analysis of financial statements: Guide to analyizing financial statements for financial analysts.
Requirements: 600-word limit.
