Regarding Enron, this was a company that resulted in the creation of the Sarbanes-Oxley Act and many reforms to the accounting profession. Research the company and answer the following questions.

Question 1: How did the members of the accounting firms violate the standards of integrity and credibility?

Question 2: Do you believe the new standards that resulted from the Enron scandal to be adequate?

Question 3: Name and explain two aspects of the Sarbanes - Oxley Act of 2002.

Question 4: Ratio Analysis. Using the 2000 Enron 10-K, calculate 2 years of the following liquidity, solvency and profitability ratios. Include your calculations and analysis for these ratios and what they tell you about the company.

Liquidity: Current ratio, Accounts receivable turnover

Solvency: Debt to assets ratio, Times interest earned

Profitability: Profit margin, Earnings per share

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