Financial Management (Google and Microsoft)

Google, a leader in Internet information searching, is being challenged by other big names in Internet technology. Compare and contrast Google's business model and financial management with Microsoft's, which launched Bing. Access Google and Microsoft's annual reports and financial statements at their Websites. In addition to the text, you may access some other sites and or sources to understand the how to analyze an income statement and a balance sheet. For example, the following sites can provide guidance: Understanding the Income Statement at: http://www(dot)investopedia(dot)com/articles/04/022504.asp Reading the Balance Sheet at: http://www(dot)investopedia(dot)com/articles/04/031004.asp However, if these sites are not available, there are other sites that can be accessed that will provide sufficient information and guidance. Write a 7-8 page paper in which you: Calculate or identify from each company's most recent annual report the six (6) specific financial ratios listed and provide as an appendix to the paper. Liquidity measurement ratio: Current ratio Profitability indicator ratios: Return on assets Return on equity Debt ratio: Debt ratio Operating performance ratio: Fixed asset turnover ratio Cash flow indicator ratio: Dividend payout ratio Investment valuation ratio: Price / Earnings ratio (If you need help with ratios you could access Web sites that provide guidance such as: http://www(dot)investopedia(dot)com/university/ratios/ However, if this site is not available, other sites can be accessed that offer similar information.) Compare and contrast each company's business model: (1) core business, (2) leading products and/or services, (3) management/leadership style, and (4) innovation track record. Use the financial ratio analysis and explain which company is better able to withstand a major recession. Explain what the profitability ratios can tell about Google and Microsoft's performance and how that information would influence investing decisions. Identify and explain three (3) primary financial-based guidelines that should be used when selecting which of these two companies to invest in. Use a minimum of three (3) quality external resources from the last three (3) years to support the content of the paper. (Note: Do not use Wiki sites.) Your assignment must: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required page length. The specific course learning outcomes associated with this assignment are: Analyze the components of the basic financial statements, and conduct trend and ratio analysis to assess a firm's financial performance. Evaluate the sources of short-term and long-term financing to identify the effective use and associated risks of these sources in managing working capital and in capital budgeting. Use technology and information resources to research issues in contemporary business. Write clearly and concisely about contemporary business using proper writing mechanics Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric.