Use the Internet to research a company in which you are interested and review their financial statements, with a focus on how the company is currently using options. Then determine the best way the company you researched could leverage stock options to offset employee compensation. Explain your rationale.© BrainMass Inc. brainmass.com October 25, 2018, 7:12 am ad1c9bdddf
Kindly find attached tutorial having some ideas, references and content related to ...
This solution provides an example company, and determines the best way the company could leverage stock options to offset employee compensation.
Long Term Debt, Contingencies and Leases
See the attachment.
Discuss trends, financial position, ratios, etc. For example, it may be helpful to discuss inventory turnover when assessing inventory valuation risk.
Obtain the 2010 financial statements and notes (annual report or 10-K) for Monro Muffler Brake, Inc. (MNRO). Use Tenneco for a benchmark and comparison purposes. This means ratios must be completed for both companies (but a description of the company only needs to be done for Monro).
To assess a company's financial statements, think specifically about: (1) the types of underlying transactions and events that affect the company, (2) how well the financial accounting rules (i.e., GAAP) reflect those transactions and events, (3) the aggressiveness or conservatism of management's accounting choices, and (4) how the annual report helps you assess the company's risks, financial position, and profitability.
For each item below, provide an easy to read and understandable presentation of the facts for your company. There should be a brief description of the items (Monro) and computational analysis (ratios).
LONG-TERM DEBT, CONTINGENCIES AND LEASES:
? Description of long-term debt
? Major leasing activities (if any) and types of leases involved
? Business reasons for, and importance of leasing activities
? Other significant liabilities disclosed for contingencies, warranties or commitments and their importance
Things to consider: Description of debts, Debt Percentage, Operating leases vs Capital leases, Present Value of bonds and leases, etc.
Link for Munro 10K:
Link for Tenneco 10K: