1) Please answer each of the following questions in detail and provide in-text c
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1) Please answer each of the following questions in detail and provide in-text citations in support
of your argument. Include examples whenever applicable.
a. Explain the major financial ratios and financial cycles, debt ratio, debt to equity ratio,
return on assets, return on equity, current ratio, quick ratio, inventory turnover, days in
inventory, accounts receivable turnover, accounts receivable cycle in days, accounts
payable turnover, accounts payable cycle in days, earnings per share (EPS), price to
earnings ratio (P/E), and cash conversion cycle (CCC) and state the significance of
each for financial management. Include examples based on a hypothetical balance
sheet and income statement.
b. Can CCC be negative? If so, what does it indicate?
c. Explain working capital and its significance. Evaluate working capital in your example
given in part “a” of this DQ2.
2) Search Yahoo Finance or/and any other credible source(s) to find the most recent income2)
statement and balance sheet of a major corporation.
● Provide these statements in the appropriate format (financial statement)
● Perform a vertical financial analysis incorporating
i. Debt ratio
ii. Debt to equity ratio
iii. Return on assets
iv. Return on equity
v. Current ratio
vi. Quick ratio
vii. Inventory turnover
viii. Days in inventory
ix. Accounts receivable turnover
x. Accounts receivable cycle in days
xi. Accounts payable turnover
xii. Accounts payable cycle in days
xiii. Earnings per share (EPS)
xiv. Price to earnings ratio (P/E)
xv. Cash conversion cycle (CCC), and
xvi. Working capital
xvii. Explain Dupont identity, apply it to your selected company, interpret the
components in Dupont identity.
Provide your explanations and definitions in detail and be precise. Comment on your findings.
Provide references for content when necessary. Provide your work in detail and explain in your
own words. Support your statements with peer-reviewed in-text citation(s) and reference(s). All
PA and CLA submissions require at least six (6) peer-reviewed references, which should
include the source of the data.