Respond To Classmates’ Financial Analysis Discussions

Respond to Classmates Financial Analysis Discussions

Respond to Classmates’ Financial Analysis Discussions

Guided Response: Respond to at least two of your fellow students’ or instructor posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words and be respectful of others’ opinions and beliefs that differ from your own. Support your position by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum. Continue to monitor the discussion forum until Day 7 and respond with robust dialogue to anyone who replies to your initial post.

Below are two of my classmates with their week 6 discussions that I need responses to. The names are Jamie Choate and Lisa Schreiner.

Sample Paper For Above instruction

Response to Jamie Choate’s Analysis of Financial Statements

Jamie, your detailed examination of the common-size financial statements provides meaningful insights into Build-A-Bear and Mattel’s operational and financial health. I particularly appreciate your focus on inventory management differences; however, it might also be worth considering how these firms’ strategic approaches to inventory and cash management could influence future liquidity and profitability. For example, Build-A-Bear’s significant inventory reduction might indicate an effort toward leaner operations, but it raises questions about whether this is due to sales decline or strategic liquidation. Additionally, your observation on Build-A-Bear’s debt activity compared to Mattel’s borrowing patterns offers a good perspective; expanding on how debt levels could impact long-term growth would enhance the analysis (Fuhrmann, 2020). Including industry trends could also contextualize whether their current strategies are aligned with market expectations, which can be crucial for investors. Overall, your assessment highlights key financial metrics; a further discussion on how these might influence investor confidence would round out your analysis.

Response to Lisa Schreiner’s Discussion on Common Size and Horizontal Analysis

Lisa, your description of common size statements and their utility in cross-company and temporal comparisons is well articulated. I agree that understanding percentage changes aids in identifying operational efficiencies and issues that may not be obvious from raw data alone. Your discussion of Starbucks’ high debt-to-equity ratio and the implications of insolvent status underlines the importance of debt management. To deepen this analysis, it could be beneficial to consider how Starbucks’ long-term debt specifics—such as interest rates and maturity profiles—might influence future financial stability and how they compare to McDonald’s’ more favorable debt structure. Also, incorporating industry-wide trends in debt utilization and how macroeconomic factors could impact these ratios would provide a more comprehensive view. Your emphasis on cash flow health is critical; perhaps further exploring the causes of decreased cash from operations can shed light on operational challenges Starbucks faces.

References

  • Fuhrmann, R. (2020). The Common Size Analysis of Financial Statements. Retrieved from [insert URL]
  • Porter, G., & Norton, C. (2018). Using Financial Accounting Information: The Alternative to Debits and Credits (10th ed.).
  • Build-A-Bear Workshop. (2020). Financial Reports.
  • Mattel. (2020). 2019 Annual Report.
  • Hayes, A. (2020). Common Size Financial Statement Definition. Retrieved from [insert URL]
  • U.S. Securities and Exchange Commission. (n.d.). EDGAR company filings.
  • Tuovila, A. (2019). Horizontal Analysis. Retrieved from [insert URL]
  • Investopedia. (2021). Horizontal Analysis. Retrieved from https://www.investopedia.com/terms/h/horizontalanalysis.asp
  • AccountingTools. (2021). Common-Size Financial Statements. Retrieved from https://www.accountingtools.com/articles/what-are-common-size-statements.html
  • Choi, F. D. S., & Meek, G. K. (2019). International Financial Reporting and Analysis (8th ed.).

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