4.2: Components of a Balance Sheet
4.2.1: Assets, Liabilities, and Stockholders' Equity
Re-read pages 210-211 from Module 4 of Introduction to Business for information on assets and liabilities. Then review the text under the heading "How Do Financial Statements Relate to One Another?" in Section 12.2 of Exploring Business. Then, read the Key Takeaways for a summary that brings all the concepts of the reading together. Also, read "Section 12.4: Financial Statement Analysis" again and focus on the material beneath "Ratio Analysis."
4.2.2: Key Financial Ratios Using the Balance Sheet
Working independently, complete the assignment on pages 234-240, in which you will perform a financial analysis on one retail company based on the given financial statements. As you work, try to answer the following questions: What is the main purpose of completing ratio analysis using any firm's financial statement? What are the categories of financial ratios? It is important to remember that financial ratio guidelines may be different for one industry as compared to another.