Fin 534 W2 Diss

"Analysis of Financial Statements" Please respond to the following:

* * From the e-Activity, determine why it is sometimes misleading to compare a company’s financial ratios with those of other firms that operate within the same industry. Support your response with one (1) example from your research.

Compare similar Industry companies is quiet risky because even they are same industry there are factors that make them different from Financial perspective and therefore Financial Ratios outcomes don’t reveal this implicit information (parker, Nov91). It is important to compare them with Financial Ratios but is necessary identify the patterns corresponding for the determine industry (Taylor, Sep2011). Also is misleading to compare companies with financial ratios when both companies of the same industry are using different inventory valuation, that make look different the financial reports and therefore mislead the comparison by Financial Ratios Calculations. And that is because they are following different accounting Principles.

* * From the scenario, determine two (2) strategies that TFC could utilize to reach its expansion goals. You may, for example, consider your analysis of TFC’s financial statements, as well as your knowledge of TFC’s excessive cash position. Provide a rationale for your response.

TFC should do first a SWOT analyses of its business in order to identify truly what kind of opportunities can they take advance with the Strengths they have now. Take other decisions before this step is a very risky procedure in order to optimize success for the business (TWEEDY, 10/24/2011). So, what kind of opportunities TFC can identify in the area they want to expand and with what kind of strategy in base of their strengths they can really impact the market for the success of the business? There is a variable to solve. Then a Professional Marketing research by the new area they want to expand is very important to identify the status of all the...