Questions to Consider (35 points total)

Review the following information found in Chapter 17 of the textbook.

  • Figure 17.5, Very Vegetarian—Balance Sheet, dated December 31, 2012
  • Figure 17.7, Very Vegetarian—Income Statement, dated December 31, 2012
  • Figure 17.8, Very Vegetarian—Statement of Cash Flows, dated December 31, 2012

You are contemplating investing in Very Vegetarian or possibly purchasing the company outright. Based on this information, as well as the financial statements provided in the textbook, answer the following questions in a two- to three-page paper. Your paper should use APA style.

Why is it advisable to evaluate the company’s financial statements? What key information would you seek to understand about the financial statements? Why? (8 points)

It appears that Very Vegetarian financial statements follow a very strict form. Why must accounting reports be prepared according to specific procedures (GAAP)? Is it permissible for businesses to be allowed some flexibility or creativity in preparing financial statements? Why? Why not? (7 points)

What value do financial ratios offer investors in reviewing the financial performance of a firm? (8 points)

Why is it important to understand that financial ratios can differ from industry to industry? (7 points)

Include APA style reference information as in-text citations and at the end of your paper. (5 points)

Upload your completed paper to the Dropbox for Week 7.

To successfully complete your Questions to Consider assignments, you will need to be familiar with the APA style guide for writing your citations.

Making a habit of including citations in your work is important; it is required in assignments in this class, as well as in all other DeVry classes. If you have any questions concerning how to do in-text citations or a list of references page, please contact me! As with all professional and academic writing, your paragraphs should include complete sentences and correct punctuation, and they should be checked for spelling and grammar in Word prior to submitting your work.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information.