How are their financial statements similar and different from those presented in the text?
Describe the differences, if any, and explain why you believe the differences exist. As a potential investor, what areas do you think you should be most concerned with, if any, based upon the notes? Assuming you had unlimited funds, would this be a company you would invest in? Why or why not?
Assignment: Interpreting Financial Statements
Using the Business Report Template, address the following using Medi-Supply’s income statement:
Interpret the quality of the income statement for this company. Is the income statement improving or deteriorating over time? Explain your answer, including why you reached your conclusion. (75–150 words, or 1–2 paragraphs)
Describe whether or not this company is profitable. If the company is unprofitable, explain if it is growing fast enough for sales to outpace expenses. (75 words, or 1 paragraph)
Based on their income statement, would you invest in the company? (75 words, or 1 paragraph)
Part 3: Calculating the Operating Cash Flow
Using the Financial Statement Excel Template, which includes the needed data, compute the operating cash flow for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
Using the Business Report Template, address the following using Medi-Supply’s operating cash flow:
Interpret the quality of the operating cash flow for this company. Is the operating cash flow improving or deteriorating over time? Explain your answer, as well as why you reached your conclusion. (75–150 words, or 1–2 paragraphs)
Describe whether or not the company generates positive cash flow from operations. (75 words, or 1 paragraph)
Based on the quality of their cash flow, would you invest in the company? (75 words, or 1 paragraph)
Note: For each part of your business report, be sure to reference at least one scholarly source to support your findings, for a total of three (3) scholarly sources. Use the Week 2 Assignment Business Report Template and the Week 2 Assignment Financial Statement Excel Template, provided in this week’s Learning Resources, to complete this Assignment.
