You have been provided financial statements for Bacon Signs. With this

You have been provided financial statements for Bacon Signs. With this information you are able to calculate a number of financial ratios. However, financial ratios, while often very useful, alone are insufficient for a thorough financial analysis.

Identify at least 5 types of useful financial information you would like to use in conjunction with the ratios you could calculate from the information provided.

ANSWER

This is a very open-ended question. Some ideas students may suggest include, industry average ratios to compare against those they calculate for this firm, or similar ratios for competitors or industry leaders. They may also suggest a time series of information for those groups as well. I would think that current and expected economic conditions would be desirable as well as market values for the company’s stock. The annual report is another source of financial information as well as reports from analysts. They should also suggest a statement of cash flows.