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Can someone help explain this to me? I want to search Kansas city southern railroad. KSU Use the Internet search engine of your choice and do a general search on the name of a company of interest to you. Explore the web site of the company you choose and locate that companys most recent financial statements. You may need to look under a category that provides general information about the company and/ or investor information. Find and read the description of the company, including the type of business it is in. Why is gaining an understanding of the industry and type of business an important starting point for financial statement analysis? Locate the companys primary financial statements. Find the summary table of ratios in this chapter in Exhibit 1426. Calculate three of the listed ratios under each of the following categories: Measures of short-term liquidity and Measures of profitability. Show your work in calculating these ratios. Write a brief statement describing what you have learned about your companys liquidity and profitability. Why do you think the Internet has become such a widely used source of financial information by investors and creditors? For your response post, you will be taking on the role of the manager and respond to your employees memo. Inform the employee as to what specific managerial decisions, conclusions, and/or judgments can you make from the information provided in that memo. Do not respond to a memo that has already received a managerial response.

Measures of profitability Dollar Amount of Change Financial Statement Amount in the Earlier Year Percentage changes, that The rate at which a key measure is increasing or is, in net sales and net decreasing; the "growth rate" income A measure of the profitability of the company's Gross Profit Net Sales Gross profit rate Operating expense ratio products A measure of management's ability to control Operating Expenses Net Sales expenses The profitability of a company's basic businesS Gross Profit-Operating Expenses activities Page 656 Operating income Net income as a percentage of net sales An indicator of management's ability to control costs Net Income Net Sales Net Income Preferred Dividends Average Number of Common Shares Outstanding Net income applicable to each share of common Earnings per share stock A measure of the productivity of assets, regardless Operating Income Average Total Assets Return on assets of how the assets are financed The rate of return earned on the stockholders Net Income Average Total Equity Return on equity equity in the business The rate of return earned on the common Return on common Net Income - Preferred Dividends Average Common Stockholders' Equity stockholders' equity; appropriate when company has both common and preferred stock stockholders' equity

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