Choose two firms that compete within the same industry (e.g., J.C. Penney and Sears, Johnson & Johnson and Merck, Ford and GM, etc.). 2.Go to each firm's Web site, and then access and download their annual reports (financial statements). 3.Using the accounting data from the firms' financial statements and the ratios studied in Chapter 9 of the textbook, calculate all ratios for each firm (liquidity ratios, activity ratios, profitability ratios, leverage ratios, and coverage ratio).Current ratio, Quick ratio, Inventory turnover, Receivables turnover, Total asset turnover, Fixed asset turnover, Operating profit margin, Net profit margin, Gross profit margin, Return on total assets, Return on equity, Basic earning power, Debt/net worth ratio, debt ratio, Time-interest earned 4.Analyze and compare your calculations for the two firms. ** The following firms cannot be used Macy's, Express, Nordstrom's, McDonalds, Burger King, Revlon, Avon, Wendy's, Dunkin Donuts, Starbucks, Texas Roadhouse, Brinker, Windows, and Apple.
Companies chosen: Ford and GM
Answer will be sent by email as attachment.
