Acc 201

Case Assignment, Module 1

Charles E Gillespie Jr.

ACC/201

February 25, 2013

Dr. Coates

Case Assignment, Module 1

There are three publicly traded companies that will be discussed in this paper which are; Domino’s, Amazon, and Pepsi. The objective of this assignment is to research the amount of cash available; is the company in good or bad shape; the increase or decrease in investment for their operations; how well is each company doing in their operations; and to give each company president a letter grade based on their financial statement.

Domino’s will be the first discussion for the project. After reviewing Domino’s financial statement, it revealed that they had $50,292 million in cash to pay its current debt. It is also imperative to know the debt ratio when analyzing a company financial well-being. “A ratio that indicates what proportion of debt a company has relative to its assets. This measure gives an idea to the leverage of the company; along with the potential risks the company faces in terms of its debt-load” (www.investopedia.com, 2012). To find the current ratio and debt ratio the total current liabilities ($326,843 mil) divided by the total current assets ($197,175 mil), which in the case of domino’s is 0.60 and current ratio is 1.66. “A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt. Used in conjunction with other measures of financial health, the debt ratio can help investors determine a company's level of risk” (www.investopedia.com, 2012). As (www.Investopedia.com) suggests domino’s level of risk is low and financially healthy, which investors will find it is a very safe investment.

Domino’s investments in its operations has increased according to the financial statement in 2012 Domino’s total investments in their operations for the year was $26,941 mil and in 2011 was $18,380 mil which is an increase of...