1.Balance sheets provide information on a company’s assets and liabilities. Analyzing balance sheets can help us understand if the company can pay its debts and pay its owners and shareholders. Referencing the Balance Sheet Ratios found in Exhibit 19 of your text, calculate your company’s solvency ratios. Prepare the same calculations for two competitor companies. Post your results in your initial discussion forum along with an explanation of why the calculations are beneficial and how your company compares to the competitor companies.

2.Prior to beginning work on this discussion, review the cash flow statement for your selected company for at least 2 years, and read Chapter 6: “Understanding Cash Flow Statements.” Discuss how much cash flow was generated or used by (a) operations, (b) investing activities, and (c) financing activities. Using cash flow from operations, determine the operating cash flow to revenue percentage for 2 years, and compare to two competitors for those 2 years. Discuss your company’s performance compared to its competitors. Calculate the free cash flow to the firm (FCFF) for your selected company for at least 2 years. Is it growing or declining? Explain why FCFF is an important calculation.