Financial Statement Analysis

Please answer the following questions on Logitech International. List each question followed by your answer below the question. Your report should be approximately 3 pages in order to effectively answer all the questions. Teams will be selected at random to lead the class discussion on this case.

1. Using the Consolidated Balance Sheets for Logitech International S.A. (Logitech) for March 31, 2010 and 2009, prepare a common-size balance sheet.

2. Evaluate the asset, debt, and equity structure of Logitech, and explain trends and changes found on the common-size balance sheet.

3. Analyze accounts receivable and allowance for doubtful accounts.

4. What inventory method is used to value inventories? Does this method reflect current cost at year-end?

5. Discuss the commitments and contingencies of Logitech and the significance of these items. There are approximately nine!

6. Explain what has caused the change in the retained earnings account from March 31, 2009 to March 31, 2010.

7. Discuss any positive items learned about Logitech from the balance sheet and excerpts from the Form 10-K.

8. What concerns would investors and creditors have based on only this information?

9. What additional financial and nonfinancial information would investors and creditors need to make good investing and lending decisions for Logitech?