Explain the relevance of changes in net income to investors


Research In-N-Out Burger Company and FROM THE COMPANY WEBSITE download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows.

Answer the following questions- APA format is NOT used for this assignment:

  • 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.
  • Using excel: Compute the return on assets. Discuss the relative profitability of the company based on your results.
  • Using Excel: Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results.
  • Using excel: Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company.
  • Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making?

Show your work in Excel.

Complete calculations/computations using Excel.

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Accounting Basics: Explain the relevance of changes in net income to investors
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