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University of North Dakota Street Inc Analysis of Financial Statements MEMO
You are a junior member of the accounting firm of Bert, Ernie & Elmo LLP. Your client, Abby Cadabby has approached your firm and asked for some assistance. She is evaluating whether to make a sizable investment in the stock of The Street Inc. The Street Inc. is a growing company in the same line of business as Ms. Cadabby and she feels it has a lot of potential for the future.
Your boss, Mr. Olson, has provided you with a file containing Income Statements and Balance Sheets for Street Inc. for the past 3 years. Using the ratios learned in your Intermediate Accounting class, he would like you to analyze the financial statements of The Street Inc. for Ms. Cadabby. When you are completed with the ratio calculations, write a memo to Ms. Cadabby in which you discuss the trends you found in the analysis and if you feel she should make the investment in The Street Inc. A template is provided in Blackboard for showing the calculations for your analysis.
