Chapter 13, Problem 2BTN

To determine

Memo:

From,

N

To,

M

Date: March 26, 2018

Subject: Analyzed information about particular industry’s companies.

Dear Teammate,

Explanation:

Here the industry which is chosen by the group is an automobile industry. An automobile industry contains various types of vehicles such as commercial vehicles, passenger’s cars and so on. One of the companies running under automobile industry is M Company which manufactures two wheelers.

When it comes to analyze a company’s performance there are some ways of doing it. Firstly with the help of financial statements of M Company we can study the performance of it. The gross profit, net profit a company is earning. The state of their current assets and fixed assets. This is a way of analyzing particular aspect.

Secondly, various ratios can also be used to discover the state of M Company as in which direction it is going. Some of the ratios such as asset turnover ratio, current ratio, debt-to-equity ratio, net profit margin ratio, return on equity ratio and so on.

These entire thing related to analyzing information could analyze M Company of an automobile industry.

Yours,

N