Annuity. It explains the duration when annuity is being financed and before the actual payouts are made

Homework
1. Definitions
I. Annuity. It explains the duration when annuity is being financed and before the actual payouts are made. For example, it is a situation whereby accumulation of resources could have occurred.
II. Finance defines the study and review of the investments including the review of the assets and liabilities with time.
III. Deficit. It explains the excess expenditure and liabilities over assets in certain duration of time. Some of examples include deficiency and shortage of resources and items.
IV. Debenture describes the long-term security that yields fixed interest earnings and are secured against the long-term assets (Callen, 2015).
V. Risk defines the situation that often leads to the exposure to severe danger such probability of poor financial results.
VI. Debt. It defines the amount of money that is due to companies. Such aspect explains the implications of financial obligations that are costly to the companies.
VII. Secondary market. It describes the financial markets whereby financial instruments including bonds and futures can be bought and sold (Wu, & Shen, 2013).
VIII. Primary market describes the location whereby the securities are developed. The primary markets are the markets whereby the initial public offering occurs.
IX. Future value explains the value of the overall assets at a certain period of time. It evaluates the future value of money which a certain amount of money is worth at a certain time in the near future (Barth, 2015).
X. Loanable funds describe the various forms of credit including loans, bonds and saving deposits among others.
II. Financial Analysis
1.
The assessment of the financial performance of Kroger Company is critical. Kroger Company is an American retail firm. The dominant source of Kroger Company’s revenue is the revenues from the retail stores sales. In 2017, the sales revenues of Kroger Company were reported to 115.34B. On the other hand, Target Corporation reported $69B in sales revenues. In terms of assets, the overall assets of Kroger Company were reported to be $34.9B in 2016. On the other hand, Target Corporation recorded total assets of $40.2B in 2016. In reference to market capitalization, Kroger Company has a market capitalization of 18.80B. In contrast, Target Corporation has a market capitalization of 33.82B.
2.
The income statement of Kroger Company has seen some significant changes and transformations. From the year 2014 to 2016, the net income is expected to rise. In 2014, the net income was reported to be 1.49B. The net income of the company increased in 2015 and 2016 to 1.51B and 1.71B respectively. The increase in the net income was due to the increase in the sales of the company over the last three years.
3.
There are some notable changes in the balance sheet of the company over the last two years. In 2016, the total liabilities were reported to be 28.1B that is an increase from 25.11B in 2015. The total liabilities & shareholders’ equity were reported to be 30.56B in 2015. In 2016, the total liabilities& shareholders’ equity increased to 34.9B. In terms of the cash flows statement, the net operating cash flow changed significantly with an increase from 4.19B in 2015 to 4.74B in 2016 (McLaney, & Atrill, 2014). Based on investing cash flow, the net investing cash flow increased from 3.06B in 2015 to 3.6B in 2016. The cash account increase slightly in 2016 to 1.39B from 1.36B in 2015.
4.
In terms of financial ratios, the liquidity ratios include the current and quick ratios. In 2018, the current ratio is projected to increase to 0.85. The quick ratio would also increase to 0.25 in 2018. Based on asset management ratios, the asset turnover and fixed assets turnover helps to determine the asset recovery and management of the company. In 2018, the fixed assets turnover will rise to 5.91. In terms of the asset turnover, it will increase to 3.78 in 2018.
In 2018, the profitability of the company is projected to increase. Net margin would increase to 1.80%. The return on equity would also increase to 31.05% in 2018 (Flammer, 2015). The interest coverage is also expected to increase to 7.12 in 2018. The debt can be depicted by debt/equity ratio and it is expected to reduce to 1.52.

References
Barth, M. E. (2015). Financial accounting research, practice, and financial accountability. Abacus, 51(4), 499-510.
Callen, J. L. (2015). A selective critical review of financial accounting research. Critical Perspectives on Accounting, 26, 157-167.
Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach. Management Science, 61(11), 2549-2568.
McLaney, E. J., & Atrill, P. (2014). Accounting and finance: An introduction. London, UK: Pearson.
Wu, M. W., & Shen, C. H. (2013). Corporate social responsibility in the banking industry: Motives and financial performance. Journal of Banking & Finance, 37(9), 3529-3547.