Purpose of Assignment — Selected Sally Beauty Holding Inc.
This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability.
Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials
Tutorial help on ExcelÂ® and Word functions can be found on the MicrosoftÂ® Office website. There are also additional tutorials via the web offering support for Office products.
Select a publicly traded, U.S. corporation that you are interested in.
Research the company on the Internet and download the most current Annual Report with the Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and Statement of Cash Flows.
GO DIRECTLY to your company’s website, find the investor section, and locate the most current 10-K or Annual Report. You can download OR provide a working link. DO NOT rely on summary sites- you will not receive credit. Failure to provide me with statements or a link will result in a substantially lower grade, as I will not go looking for your company statements.
Develop a maximum 500-word examination of the financial statements and include the following:
- Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year?
- Explain the relevance of changes in net income to investors.
- Determine the ending balance in shareholders’ equity. Why would organizations such as labor unions be interested in this?
- Determine the total value of assets.
- Discuss the relevance of the total value of assets to potential creditors and why this is important.
- Compute the return on assets. Dollar for dollar, what does this mean for the company?
- Compute the current ratio and the quick ratio. Dollar for dollar, what does this mean for the company?
- Compute the debt to assets ratio for your company. What does the result mean for the company?
YOUR WRITING SHOULD BE CLEAR, CONCISE AND FACTUAL. PLEASE UTILIZE THE GRAMMAR TOOLS AVAILABLE IN THE LIBRARY. BE SURE TO EDIT AND CUT AREAS OF “FLUFF”.
Show your work in ExcelÂ®.
Complete calculations/computations using ExcelÂ®.
Include the four financial statements along with your assignment.
Format citations and references in APA format. THIS IS NOT A FULL PAPER-JUST ANSWER THE QUESTIONS.
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