Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 7

Obtain from your library (or other source) the most recent annual report of a publicly owned company.
a.?Using the annual report data, compute the basic measures of liquidity, long-term credit risk, and profitability summarized in Exhibit 14-26. Compare these measures to the appropriate industry norms available in your library. Briefly comment on your findings.
b.?Using the financial pages of a daily newspaper (such as The Wall Street Journal ), determine (1) the current market price of your company's common stock, (2) its 52-week high and low market prices, and (3) its p/e ratio. Briefly comment on your findings.
c.?Based on your analysis in parts a and b, make a recommendation as to whether investors should buy shares of the stock, hold the shares they currently own, or sell the shares they cur­rently own. Defend your position.