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Historical Financial Statements (Income Statement, Balance Sheet and Statement of
Cash Flows) from the 3 most current years southwest airlines. These should be downloaded
from the SEC website. The financial statements must include horizontal (shown
between the years) and vertical analysis (shown to the right of the last year of
historical data).

 

2. Ratio analysis for the ratios shown on Table 1 in the Guide to Case Analysis (CA) of
the textbook:
a. Profitability ratios
b. Liquidity ratios
c. Leverage ratios
d. Activity ratios
e. Price-to-earnings ratio
f. The changes between years are included in the calculations.
3. Competitor ratios to compare with the ratios that were calculated in item 2. These
should be included on the same tab as the ratio analysis for the firm.

 

4. Financial analysis should include comparisons to the firm’s main competitor as well
as to the industry. How does the financial position of the firm influence the strategic
direction of the company? This section should not be used to define what each ratio

is rather it should clearly provide analysis based on the calculations as to the strategic
choices and implications of the firm’s financial position. A compare and contrast
with the main competitor should be included in this section of narrative.

Sample Solution

 

The financial position of a firm plays an important role in influencing the strategic direction of the company. Financial analysis should include comparison to both the firm’s main competitor as well as to industry averages, so that management can identify areas where they have financial strengths and weaknesses relative to their competitors or within the sector overall. For example, if a firm has lower than average profits yet higher than average debt levels compared to its competitors, management may need to strategize additional ways of generating revenue while reducing costs in order to improve its financial position. On the other hand, if a firm has large

 

 

Sample Solution

 

The financial position of a firm plays an important role in influencing the strategic direction of the company. Financial analysis should include comparison to both the firm’s main competitor as well as to industry averages, so that management can identify areas where they have financial strengths and weaknesses relative to their competitors or within the sector overall. For example, if a firm has lower than average profits yet higher than average debt levels compared to its competitors, management may need to strategize additional ways of generating revenue while reducing costs in order to improve its financial position. On the other hand, if a firm has large

 

 

cognitive skills. The cognitive skills that are getting improved by playing with legos are fine motor skills and math skills (Sri). Legos come in a vast range of shapes and sizes, which can lead to twisting and turning a child’s hands, fingers, and arms. This promotes coordination and dexterity which are needed for children for crafts, handwriting, and dressing themselves. Legos also help in a child’s math skills because children need to learn how to add, subtract, multiply, or divide how many pieces they need for their creation. A study has been done to see if Legos actually increase cognitive development. There were two groups of kids and one group was able to play with legos for a month and the other group was not able to play with Legos. After the month, the kids were put through a series of tests to see how well their fine motor skills developed. Through the study, it was seen that the kids, who played with Legos for a month, had a significant increase on their cognitive development. Second, Legos are able to strengthen a child’s emotional skills. Legos are able to help aid in a child’s emotional development by giving them a sense of accomplishment and to teach them persistence. With the sense of accomplishment, children are able to feel a sense of pride after they create something, which can lead to an increase in self-confidence. Legos are able to teach children persistence because Legos are small, which can lead to mistakes. This allows the children learn to cope with the frustration of mistakes and to keep on building until they get it right. Lastly, Legos can help in social skills by cooperating with peers. Children can cooperate with peers to build something together.

 

 

Legos have also been able to serve as a foundation for future careers. They can serve as a foundation because children that have played with Legos are already exposed to skills needed in future careers. By developing a child’s math skills and ability to follow intricate directions, this has allowed for future engineers and architects to flourish in their fields. An example would be how a woman’s daughter has been able to use her past experiences with Legos to be able to use them in her job being an architect. She was able to recall past designs she made with Legos and implemented them in the buildings she designs now(Cooke). Legos have also aided people in art careers. Legos help children explore their creativity by being built into whatever they can imagine. There are now artists that focus on mainly using Legos to create pieces of art.

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