ACC670 Advanced Financial Statement Analysis
Week 2 Discussion
DQ1 Refer to Problem 3-5, located at the end of Chapter 3 of the text. Imagine you are at a job interview at Rubber Industries headquarters for a financial analyst position. During the interview, you are provided the balance sheet found in Problem 3-5. The interviewer asks you to explain how you would use the balance sheet to help move your company forward.
DQ2 One criticism of the balance sheet is that assets are recorded at cost rather than at their current market value. What are some other problems with using the balance sheet to analyze a company’s financial position given that the numbers are not listing their current market value? How would you overcome these problems?
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