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.