Financial Statement and Cash Accrual Analysis Paper
Financial Statement Analysis
Company Choices
The task of choosing three companies from manufacturing, the service sector, and retail sales consisted of several factors. One of the choice clauses was that one company be a foreign organization. Adidas was chosen for being a German shoe company which is only second in shoe retail sales to Nike. Cintas is an established service provider of uniforms to nationwide organizations that embrace employee dress codes with brand recognition. Lastly, Mitsubishi was selected for being a manufacturer of cars, and televisions as well as several additional electronics. After computing the current liquidity ratios, the DuPont ration, profit margin, asset utilization and financial leverage of each company the current text will discuss the differences in each industry. In addition, the same discussion will explore how the different measurement conventions of each industry affect presentations in relation to the International Account Standards Board and the Financial Account Standards Board. In order to compute the quick and current liquidity ratios, the DuPont ratios, profit margin, asset utilization, and financial leverage of each of the companies the authors researched the web and were able to acquire the appropriate information which will be provided as a factual significance dictating the differences between the cash basis and the accrual basis.
The differences will be based on the standards of the ISAB and the FASB which are the International Accounting Standards Board and the Financial Accounting Standards Board. The IASB sets the standards for accounting and publishes these standards internationally because of the numerous companies operating outside of their own country. These international companies much follow the standards of their own country as well countries abroad the globe in which business exchanges are being made (IASB, 2009). The FASB is the standing...