Answer & Explanation:Download and read “How to Read a Financial Report” from http://lgdata.s3-website-us-east-1.amazonaws.com/docs/552/122696/Merrill_Lynch.pdf .Before composing your written 200- 300 word summary response, conduct a ratio analysis and complete the one-page Excel spreadsheet to be included as an appendix with your initial discussion post:Using Ratio Analysis to Interpret Company Financial Reports:Locate comparative financial statements: Locate the most recent comparative annual financial reports for your company if publicly traded (or another publicly traded company). Note that you will need the financial statements for the two most recent consecutive years (fiscal year or calendar year). You can find annual reports for publicly traded companies at the U.S. Securities and Exchange Commission website: http://www.sec.gov/edgar.shtml .Provide the direct URL address(es) as reference(s) for the financial statements cited in the written discussion post.Download the Excel worksheet Financial Ratio Analysis.xlsx.Attachment to Initial Discussion Post – Financial Ratio Analysis Worksheet: Complete the Excel financial analysis worksheet template using the financial information from the company’s Balance Sheets, Income Statements, Statements of Retained Earnings, and Cash Flow Statements for the two most recent years.Note that the F/U column represents the terms “favorable” and “unfavorable.” These terms signify the change of a ratio from one year to the next. Although organization trends are considered to be more valid when using information over a period of three to five years, reviewing ratio changes from one year to the next can still provide key information and possibly point out areas for further inquiry. Also, ratios are used to compare one company’s performance to another’s, or even to an industry’s performance.To identify the change differential from the prior year to current year in the ratios as F/U (i.e., Favorable or Unfavorable), use the following key:Current ratioF ~ up U ~ downQuick ratioF ~ upU ~ downReceivable turnoverF ~ upU ~ downDays’ sales uncollectedF ~ upF ~ downInventory turnoverF ~ upU ~ downDays’ inventory on hand U ~ upF ~ downPayables turnover F ~ upU ~ downDays’ payableF ~ upU ~ downProfit margin F ~ upU ~ downAsset turnover F ~ upU ~ downReturn on assets F ~ upU ~ downReturn on equity F ~ upU ~ downDebt to equityU ~ upF ~ downInterest coverage ratio F ~ upU ~ downCash flow yieldF ~ upU ~ downCash flows to salesF ~ upU ~ downCash flows to assetsF ~ upU ~ downFree cash flowF ~ upU ~ downPrice/earnings ratioF ~ upU ~ downDividends yield F ~ upU ~ downHR’s Need to Read: In one or two sentences, explain why it is important for HR professionals to be able to read a financial report and how they might use the information for HR purposes.Interpret the Financial Ratio Analysis Findings:Interpret Ratio Groups: Interpret the findings for each group of ratios: liquidity ratios, profitability ratios, long-term solvency ratios, cash flow adequacy ratios, and market strength ratios.Interpret the Organization’s Financial Standing: Interpret the findings of the ratio analysis as a whole. In other words, discuss the overall meaning and implications when considering the individual interpretations in Step 4.a.Implications for HR: Based on the interpretations, what are the implications of your findings for HR?
Expert answer:How to Read a Financial Report discussion, managem
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