-Using the finanacial statements o Bank of America located on their website. Ple

Question

-Using the finanacial statements o Bank of America located on their website. Please help me answer the following question. All financial information can be found on the Bank of America corp website.

Questions: 1. Does the company have a Gross Profit (the company may use a name other than “gross profit”)? 2. How much is the gross profit? 3. How does the company value its inventory? (check the accompanying notes to the financial statements) 4. Does the company have any other (non-operating) income or expense? 5. How much is the company’s working capital? (see chapter 4) 6. What is the company’s current ratio? (see chapter 4) 7. What does the current ratio say about the company’s financial condition?

Explanation / Answer

1) Yes , the company has a profit and it has a name of operating income.

2) The income is 6855 Million USD.

3) The company doesnt have an inventory. So , it doesnt have any requirement of valuing inventory.

4) No , the company doesnt have any other operating expense.

5)The company's working capital is 190000 -175900 = $14100 million

6) The company's Current ratio is 190000/175900 (Mllion USD_ = 1.09

7) The comany has a good liquidity position. But seeing the nature of business of the entity , it needs an improvement. It must be atleast 1.5

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