In last week’s learning activity, you examined the areas or indicators in the income and cash flow statements that are most important for determining corporate valuation and performance. In this assignment, you choose an actual company and analyze those statements to assess corporate valuation and performance.
Preparation
Choose a publicly held company and review its 2019 annual report. Pay particular attention to the income and cash flow statements upon which this assignment is based.
Instructions
Provide an analysis and evaluation of your chosen company’s valuation and performance. Do the following:
Justify which common accounting test should be used on the income and cash statements to best reveal insights into corporate valuation and performance. Make sure to identify your criteria.
Conduct your chosen test and share the computations and results.
Evaluate corporate valuation and performance based on financial statement analysis.