Financial Analysis Week 6 Assignment 1.
Elizabeth Bermudez
Dr. Chee Piong
ACC 556: Financial Accounting for Managers.
8-14-2015

Financial Analysis Week 6 Assignment 1.
Introduction
In this paper, we will be interpreting and analyzing a company’s health from an investor’s point of view using financial statements. For the purpose of decision making, two retailer companies featured in Fortune is the focus of this analysis. Fortune 100 best companies to work for ranks at 58 Recreational Equipment, INC., (REI) at (Fortune, 2015 Fortune 100 Best Companies to Work For®, 2015). Fortune 500 ranks 393 Dick’s Sporting Goods, INC. (Dick’s), (Fortune, Fortune 500, 2015) Decision making from an investor or leadership role explores reliable sources such as Fortune. Investment decision based on business practice influenced by business regulations are the investor's goal. Financial tools of ratios analysis used to determine profitability, liquidity, and solvency are used to evaluate performance. Ratio tools assist in the decision-making reasons for choosing to invest or not to do so.
Annual Report Financial Statement
The annual report introduces financial statement reports formatted for investor’s analysis. The main forms of interpretation include; Balance Sheet, Cash Flow, Income, Stockholders Equity or Member’s Equity. The Balance Sheet reports critical information of assets and liabilities to determine profitability, liquidity, and solvency. Specific tools used to analyze financial statements to make a meaningful evaluation of the report’s form are financial ratio classifications of; profitability ratios measures the operating success of a company for a given date period. Liquidity ratios measure a company’s short-term ability to pay obligations and its ability to meet cash needs. Solvency ratio reflects the ability of the company to pay a debt. It measures the