Caribou Coffee and Fazer Group: 3 years,profitability ratios
Not what you're looking for?
Need to answer the following:
Two companies: Caribou Coffee and Fazer Group.
http://www.cariboucoffee.com/
http://www.fazer.com/
Required:
Go to each company's website and review the most recent financial statements for each company and answer the following questions.
What accounting standards are used?
What auditing standards are used by the external auditors?
Analyze and comment on the differences in the annual statements found on the companies' websites. Provide a few specific differences in content and format.
How comparable are these financial statements?
Prepare a table for a period of three years showing some key financial information for the two companies. Include at least four items from the balance sheet, four items from the income statement, and four items from the statement of cash flow. Having reviwed and analyzed the financial information, please elaborate on the following three questions.
Which one of the two companies is the most profitable?
Do also compare growth of revenues versus income over time and between the two companies?
How can you explain the difference in profitability between the two companies?
Indicate in detail the information you used to answer the above questions.
It is important to answer the questions as posed. The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.
Purchase this Solution
Solution Summary
Your tutorial is 383 words and Excel file with four amounts from each of the three statements shown for three years on both Caribou Coffee and Fazer Group. Three profitability ratios are computed and analyzed for both firms.
Solution Preview
Caribou "C" vs Fazer "F"
What accounting standards are used?
C: United States GAAP
F: International Financial Accounting Standards
What auditing standards are used by the external auditors?
C: PCOAB (Public Company Accounting Oversight Board) of the United States
F: I do not find an audit report in the annual report for Fazer. Since non-US firms don't have an SEC to require public filings and audits, these are not required to be published.
Analyze and comment on the differences in the annual statements found on the companies' websites. Provide a few specific differences in content and format.
Balance sheet: The currencies in which the items are reported are not the same. The equity section for US GAAP (C ) shows details for the stock issues but not for F. The order of the assets and liabilities differs â?" Caribou has cash first and long ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Introduction to Finance
This quiz test introductory finance topics.