read the cases and answer some questions in the report
CASE1:
Title: Enron’s Demise–Were There Warning Signs?
*********************Questions to answer in the report:
1.Evaluate Enron’s profit, leverage, and cash flow performance during the period 1998-2000.
2.Evaluate Enron’s long-run financial performance. Does the data reflect Enron’s transformation from a pipeline company to a trading company?
3.What is your assessment of Enron’s earnings quality?
4.Evaluate Enron’s financial leverage at the end of 2000.
5.Enron’s stock price traded around $62.72 per share at the end of April 2001. Do you think Enron was worth that much?
CASE2:
Title: Krispy Kreme Doughnuts, Inc.
**************************Questions to answer in the report:
1.What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?
2.How can financial ratios extend your understanding of financial statements? What questions do the time series of ratios in case Exhibit 7 raise? What questions do the ratios on peer firms in case Exhibits 8 and 9 raise?
3.Is Krispy Kreme financially healthy at year-end 2004?
4.In light of your answer to question 3, what accounts for the firm’s recent share price decline?
5.What is the source of intrinsic investment value in this company? Does this source appear on the financial statements?
*******************Need to submit two reports separately with two word document. Each report should contain 700-1000 words.