Entrepreneurship
Analyzing Finances questions
January 2016
Do Now questions:
1. The chart above comes from what Financial Statement?
2. How much do you think Apple will earn in the next quarter?
3. Name parties that are likely interested in Apple’s earnings in the future.
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(Activity on next page)
Activity:
Using Money.cnn.com, Yahoo.finance.com or another financial markets website,
compare the Financial Ratios of Starbucks (SBUX) and Macy’s (M).
1. If you were a bank, who would you prefer to lend money to?
2. Why?
3. Would you charge each firm the same interest rate?
4. Why or why not?
5. What interest rates do you think Starbucks and Macy’s pay for 5-10 year loans?
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(Closure questions on next page)
Closure questions:
1. Should businesses manage their business based on trends in Current Ratio,
Working Capital and Debt Ratios, or should they focus only on earning as much
money as possible in the current quarter or year?
2. Why or why not?
(Interest rates, 8 year bonds, as of 12/30/15, were 2.91% for SBUX and 4.20% for M – they were 2.74% and 3.28% on Jan 6,
2015…)