1. Choose two firms that compete within the sameindustry (e.g., J.C. Penney and Sears, Johnson & Johnson andMerck, Ford and GM).
2. Go to each firm's website, and then access and download theirannual reports (financial statements).
3. Using the accounting data from the firms' financial statementsand the ratios studied in Chapter 9 of the textbook, calculate allratios for each firm (liquidity ratios, activity ratios,profitability ratios, leverage ratios, and coverage ratios).
4.Analyze and compare your calculations for the twofirms.
