Common-size statment

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C. Finance (include the common-size statements and financial ratios in the body of your report, not in an appendix)

1. Analyze the company’s financial statements for the last three to five (3-5) years, and compare them to key competitors and industry averages. Explain how this information relates to current and future strategic initiatives

a. Prepare comparative common-size statements for 3-5 years, including balance sheets, income statements, and cash flow statements.

b. Are there any significant differences when statements are calculated as common-size versus reported dollars?

c. Analyze the financial statements, including financial ratio analysis.

d. What trends emerge from the financial analysis?

e. What impact have these trends had on past performance and how might these trends affect future performance?

2. How well is the company performing financially? Is the company’s financial situation improving or deteriorating?

3. How well does this financial analysis support the company’s current strategy?