Internal financial information is not available to the public, so we have to rely on external information for our analysis. Review financial statements for two years. Use the same companies you selected in Module 2 for the SLP assignments in this course. Make a comparison of the following items and note trends.
- Revenues
- Cost of goodsold
- Accountsreceivable
- Accountspayable
- Inventory
Keeping the case analysis in mind, discuss and interpret the changes over the two-year period. Which company is the best performer and why? How is this information useful to you from a managerial perspective? Explain your reasoning and support your conclusions with the numbers you have pulled out for the comparison above. Don't forget to comment on the interaction of the balance sheet and income statement.