BUSN 460 Seek Your Dream/newtonhelp.com

operations, and explains where the cash came in and where the cash went. Though this is a very basic look at the financial reports, it is a good starting place. To go beyond this tutorial, one could review the Annual Report of a business such as Wal-Mart available at the company’s web site and also download a copy of Wal-Mart’s 10k Report from the Securities & Exchange Commission as an exercise.

The comparison of the two would provide an excellent view of the financial operation of the retail industry giant. (Transcript) Prior to starting our videos on ratio analysis there are a few terms that one needs to know: - Liquidity is the ability of the company to meet its current debt obligations.

- Solvency is the ability of the business to remain in business over a long period of time in terms of its ability to pay its long-term debts.

- Profitability is the company’s ability to generate a profit.

The Current Ratio tutorial includes the explanation of three ratios.

The Current Ratio, Working Capital computation and the execution of the Quick Ratio are demonstrated. These are Liquidity ratios.

(Transcript) Next, we will review the Inventory Turnover In this tutorial, Inventory Turnover Ratio and Accounts Receivable Turnover are demonstrated. These are Liquidity ratios. (Transcript) In the Debt Ratio tutorial, this Solvency ratio is demonstrated.

(Transcript) Moving on to the Profitabilitytutorial, Return on Net Sales and Return on Assets are demonstrated. These are Profitability ratios.

(Transcript) Hopefully you have found this one hour investment to be profitable!

IMPORTANT: Some ratios call for averages, (e.g. inventory turnover). Since CanGo has only one balance sheet available, you will not use an average, you will use the appropriate number from the