Data Analytics Project:
Ch.1:
1.
Discount Goods had a major loss in 2014, equaling ($14,542).
2.
Their operating cash flow for the 2014 year was $19729.
3.
Big store experienced the largest net operating cash flow which was a -31%.
4.
Discount Goods reported the largest change in net income at -25%.
Ch.2:
1.
Total liabilities provide the greater proportion of the accounting equation for Discount Goods in
2021.
2.
Total liabilities provide the greater proportion of the accounting equation for Big Store in 2021.
3.
Regarding the ratio, Discount Goods has the highest ratio at 70%.
4.
Big Store has a higher ratio at 2.5%.
The ratios that I calculated are important to the overall health of the businesses. For
example, the ratio of current liabilities to total liabilities probably means a large portion of
Discount Goods’ liabilities are short term, which could illustrate the need for more liquidity. In
addition, the current assets to current liabilities ration for Big Store can indicate a stronger ability
to meet their short-term obligations whereas Discount Goods has a ratio of 1.8, showing a
weaker liquidity position. Therefore, the ratios provide insight into the financial strength of the
businesses.
