Ratio Analysis

Select a publicly traded company and locate their most recent annual report (10-k report). Perform ratio analysis for the most recent 2 years of data in the financial statements. Select at least 10 of the ratios from Section 3 of Chapter 23. 

Some ratios may not be applicable. For example, if a company does not have any bonds, you will not be able to provide a ratio of the number of times bond interest was earned. Compare the two year's data and discuss in a one-page paper the overall performance of the company. Would you invest in them? Are there any areas of concern? Please include your ratios in your discussion.

To locate a publicly traded company and their annual report check out the following sources:

I chose Google. Here is the link I found for their annual report: https://www.google.com/finance?q=NASDAQ:GOOG&fstype=ii

Here is the e-book again.

Price, J. E., Haddack, M. D., & Farina, M. J. (2012). College Accounting (13th ed.). New York, NY: McGraw-Hill. 

The first ratio listed is Profitability Ratios

RATE OF RETURN ON SALES

The rate of return on sales is a measure of managerial efficiency and profitability. It is computed as follows:

Net income divided by net sales = Rate of return on net sales.

My problem is when I look at that link I provided above from Google's Annual Report, I don't know how to come up with a ratio because in order to come up with a ratio I say to myself "Okay, I see net income listed as 2,813.00 for 3 months ending 2014-09-30, but I dont' see net sales listed, therefore, I don't know how to go about dividing this up.

I have the same problem with some other ratios because my instructor wants 10 ratios.