Problem:
Select three public companies, find their annual reports in the investors relations section of their website.
Select: Home Depot, Apple & Discover
How much cash is available for the company to pay its current debts?
Is the company in trouble or in good shape? (current ratio as evidence)
Is each company increasing or decreasing its investment in its operations? [Hint: look at "Cash Flow from Investing Activities on the Statement of Cash Flows. Then note the change in Non-Current Assets on the Balance Sheet from one year to the next.]
How well is each company doing in its operations? [Hint: Look at the three year trend in Net Income on the Income Statement and at Cash Flow from Operating Activities on the Statement of Cash Flows.]