Khan academy financial statement analysis

Required Resources
Text
Brodersen, S., & Pysh, P. (2014). Warren Buffett accounting book: Reading financial statements for value investing . Retrieved from https://www.vitalsource.com

· Chapter 6: Income Statement in Detail

Porter, G., & Norton, C. (2018). Using financial accounting information: The alternative to debits and credits (10th ed.). Retrieved from https://www.cengage.com

· Chapter 3: Processing Accounting Information

· Chapter 4: Income Measurement and Accrual Accounting

· Chapter 5: Inventories and Cost of Goods Sold

Recommended Resources
Books
Brodersen, S., & Pysh, P. (2014). Warren Buffett accounting book: Reading financial statements for value investing . Retrieved from https://www.vitalsource.com

· This book provides information about financial statements, including the income statement, balance sheet, and statement of cash flows, as well as financial ratios and financial statement analysis. It may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, and the Week 2 CNow Homework Problems assignment this week.

Piper, M. (2010). Accounting made simple: Accounting explained in 100 pages or less (Links to an external site.). Retrieved from https://www.academia.edu/35733742/Accounting_made_simple_pdf

· This book provides a high-level overview of accounting, including the accounting equation, income statement, balance sheet, statement of cash flows, financial ratios, GAAP, cash versus accrual accounting, inventory, and cost of goods sold, and it may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, and the Week 2 CNow Homework Problems assignment this week.

Articles
Calculating cost of goods sold. (2011). In J. Law, Business: The ultimate resource (3rd ed.). Retrieved from https://www.bloomsbury.com/us/

· The full-text version of this article is available through the Credo Reference database in the Ashford University Library. This article provides a discussion on how to calculate cost of goods sold with examples, and it may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, as well as your Week 2 CNow Homework Problems assignment this week.

Calculating current ratio. (2011). In J. Law, Business: The ultimate resource (3rd ed.). Retrieved from https://www.bloomsbury.com/us/

· The full-text version of this article is available through the Credo Reference database in the Ashford University Library. This article provides a concise tutorial on how to calculate the current ratio, and may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, as well as your Week 2 CNow Homework Problems assignment this week.

Efficiency and operating ratios. (2014). In QFinance: The ultimate resource (5th ed.). Retrieved from https://www.bloomsbury.com/us/

· The full-text version of this article is available through the Credo Reference database in the Ashford University Library. This article provides a concise tutorial on how to calculate efficiency ratios including inventory turnover ratio and may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, as well as your Week 2 CNow Homework Problems assignment this week.

Gross profit margin ratio. (2014). In QFinance: The ultimate resource (5th ed.). Retrieved from https://www.bloomsbury.com/us/

· The full-text version of this article is available through the Credo database in the Ashford University Library. This article provides a concise discussion of the gross profit margin ratio, including how to calculate it and why it is important, and it may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, as well as your Week 2 CNow Homework Problems assignment this week.

Johnston , L. A. (2017, April). Considering cash: Advantages and availability of the cash method of accounting. Tax Adviser, 6–7. Retrieved from https://www.thetaxadviser.com

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides an in-depth discussion of the differences between cash basis and accrual basis accounting, with a specific focus on the advantages of cash basis accounting for businesses that are not required to use accrual basis accounting for tax purposes. It may assist you with your Week 2 CNow Homework Problems assignment this week.

Multimedia
Edspira. (2013, July 12). Gross profit margin ratio, defined and explained (Links to an external site.) [Video file]. Retrieved from https://youtu.be/bPXNgnbRsfw

· This video discusses and demonstrates how to calculate the gross profit margin ratio and may assist you with your Current Assets and Current Liabilities Analysis Case Study discussion forum and Week 2 CNow Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Edspira. (2013, July 15). How to calculate inventory turnover (Links to an external site.) [Video file]. Retrieved from https://youtu.be/Ophz0_bkUAg

· This video discusses and demonstrates how to calculate the inventory turnover ratio and may assist you with your Inventory Turnover Analysis Case Study discussion forum and Week 2 CNow Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Edspira. (2014, August 31). Average cost inventory method (Links to an external site.) [Video file]. Retrieved from https://youtu.be/qAWVVw-dC5A

· This video discusses and demonstrates how to calculate ending inventory using the average cost method and may assist you with your Week 2 CNow Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Edspira. (2014, August 31). FIFO inventory method (Links to an external site.) [Video file]. Retrieved from https://youtu.be/Wa83L8TvoaM

· This video discusses and demonstrates how to calculate ending inventory using the FIFO method and may assist you with your Week 2 CNow Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Edspira. (2014, August 31). LIFO inventory method (Links to an external site.) [Video file]. Retrieved from https://youtu.be/zLAvpS6o25E

· This video discusses and demonstrates how to calculate ending inventory using the LIFO method and may assist you with your Week 2 CNow Homework problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Khan Academy. (2011, March 30). Comparing accrual and cash accounting | Finance & capital markets | Khan Academy (Links to an external site.) [Video file]. https://youtu.be/LU_6amWC6H8

· This video discusses the difference between accrual and cash accounting, and it may assist you with your Week 2 CNow Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Kloza, B., & Walko, D. S. (Executive Producers), & Dimoff , D. (Producer). (2015). Ratio analysis: Business finance essentials [Series episode]. In Business finance essentials [Streaming video]. Retrieved from the Films On Demand database.

· The full version of this video is available through the Films On Demand database in the Ashford University Library. This video covers the ratios most commonly used to analyze a business and summarizes ratio analysis, quick ratio, inventory turnover ratio, debt-to-equity ratio, return-on-equity ratio, and net profit margin ratio. This video may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, as well as your Week 2 CNow Homework Problems assignment this week. This video has closed captioning and a transcript.

Kloza, B., & Walko, D. S. (Executive Producers), & , R. (Producer). (2014). Basic accounting terms [Segment]. In Accounting basics and definitions: Accounting fundamentals [Series episode]. In B. Kloza (Executive Producer), & R. Granberry (Producer), Accounting fundamentals [Streaming video]. Retrieved from Films On Demand database.

· The full version of this video is available through the Films On Demand database in the Ashford University Library. This video provides an overview of accounting fundamentals, including importance of accurate accounting, basic accounting terms, financial reporting, income statements, balance sheets (assets), balance sheets (liabilities), and owner equity and statements of cash flows. This video may assist you with your Current Assets and Current Liabilities Analysis Case Study and Inventory Turnover Analysis Case Study discussion forums, as well as your Week 2 CNow Homework Problems assignment this week. This video has closed captioning and a transcript.

Web Page
Boundless. (n.d.). Differences between accrual-basis and cash-basis accounting (Links to an external site.). Retrieved from http://oer2go.org/mods/en-boundless/www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/revenue-recognition-85/differences-between-accrual-basis-and-cash-basis-accounting-390-7238/index.html

· This web page provides a concise overview of the differences between cash basis and accrual basis accounting, and it may assist you with your Week 2 CNow Homework Problems assignment this week. Accessibility Statement doesn't exist. Privacy Policy doesn't exist.

Instruction

Prior to beginning work on this discussion forum , read Chapters 3, 4, and 5 in the course textbook, Using Financial Accounting Information: The Alternative to Debits and Credits, and Chapter 6 in the course textbook, Warren Buffett Accounting Book: Reading Financial Statements for Value Investing.

Using the same company and annual reports that you chose in your Week 1 - Discussion Forum, Reading and Using the Annual Report Case Study, address the following:

· Calculate the gross profit ratio, operating margin ratio, and net income margin ratio for the latest two years, and obtain the industry average ratios (if available) from IBISWorld.

· Analyze these ratios and discuss what each of these ratios tells you about the company’s profitability, and how it compares to the industry averages.

· Note any trends in these ratios from year-to-year, and discuss your assessment of the company based on these changes.

· If you were an investor, explain why you would or would not buy stock in the company.

Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource, in addition to the text.