ACC 610 Milestone Two

Overview

As an accountant, you may need to complete a financial analysis to understand a companys financial position. A key component to a financial analysis is to understand financial ratios. After the ratios have been calculated, you will use this information to analyze short-term obligations. To properly advise stakeholders on business decisions, you must be able to complete a thorough ratio analysis that allows you to analyze a companys performance level based on its obligations.

This milestone will support your analysis of ratios and their impact on short-term obligations, which will support your work in the project.

Directions

Use the same company you chose for Milestone One to conduct a financial analysis from the Milestone List of Publicly Traded Companies document in the Supporting Materials section. From the EDGAR website, navigate to Selected Filings and click on 10-K (annual reports) and 10-Q (quarterly reports). Choose the most recent annual report. Use the consolidated financial statements, which are located throughout the report. Identify information regarding current ratios, current assets, and current liabilities. Determine if this company can meet its short-term obligations.

Specifically, you must address the following rubric criteria:

1. Describe the current assets and current liabilities of your chosen company. Consider the following in your response:
   1. Industry of the company
2. Calculate the current ratios from the financial statements of your chosen company. Include the following in your response:
   1. Current ratio
   2. Working capital ratio
   3. Accounts receivable turnover ratio
   4. Accounts receivable ratio
3. Analyze the companys performance level based on current ratios. Include the following in your response:
   1. Companys financial ratio range
   2. Short-term obligations
   3. Credit management
4. Compare the companys performance level to the industry average using the current ratios. Consider the following in your response:
   1. Industry average
   2. Ratio comparison
   3. Short-term obligations

What to Submit

Submit your financial analysis as a 4- to 6-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.

Supporting Materials

The following resource supports your work on this assignment:

Resource:
This resource provides you with a list of publicly traded companies to choose from. Use the same company you chose for Milestone One.

AI Usage

If you use gen AI tools to support your work on this assignment, be sure to follow . You must acknowledge your use of these tools in your work. Guidelines on how to cite AI tools can be found in .

Milestone Two Rubric