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Financial Statement Analysis Project

(100 points) 

 

This project will cover the topics / concepts covered in the class.   

 

PRINT THIS OUT AND START WORKING ON THIS AS SOON AS POSSIBLE.  

 

Below are the requirements of the Financial Statement Analysis, which is due at the end of week six:

 

Financial Statement Analysis General Description: 

 

In order to reinforce the concepts and provide practical application of concepts learned in class, a project requiring students to complete a Financial Statement Analysis is included as part of this course. 

 

Specific Requirements:

 

• The Financial Statement (F/S) analysis should involve downloading a company’s financial statements and providing an in-depth report on the company’s economic condition through ratio analysis and answering of specific questions. You choose a company from the internet- maybe one which you always wanted to know about. Be careful to not become ‘bogged down’ in the volume of data in an annual Report/ Financial Statement. Choose carefully. 

 

• Create an in-depth Financial Statement analysis report with the following elements (use chapter 17 as a guide for this project):
• Perform a Horizontal Analysis of the financial statements (Balance Sheet Assets/ Liabilities and Equity; Current Assets; Comparative Income statement and Retained Earnings) as illustrated in the text Chapter 17 (pages 690 – 695) – Exhibit 17.1 page 692. A minimum of 20 ratios must be calculated- show work in a separate schedule. Approximate worth 15%
• Perform a Vertical Analysis of the financial statements (Balance Sheet Assets/ Liabilities and Equity; Current Assets; Comparative Income statement) Chapter 17 (pages 695-698) – summary Exhibit 17.8 page 696.  A minimum of 20 ratios must be calculated- show work in a separate schedule. Approximate worth 15%
• Calculate Ratios from the financial statements.  Illustrated in the textbook Chapter 17 (pages 698-707) Chapter 17 exhibit 17.16 – page 707.  Calculate at least 10 ratios. Approximate worth 15%
• There should be a separate tab for the horizontal, vertical and ratios on ONE excel file.
• Create an in-depth Financial Statement Analysis report discussing the above F/S analyses. This report must convey the results of the Horizontal Analysis, Vertical Analysis and Ratios of the financial statements.  Detail the following expected future results and perceived issues of the chosen corporation.  Tell me what you think it happening to the company based on your ratio analysis.  You can give the company information and background.  Font size 11 and paper should be double spaced.  Remember that references need to be documented.Do not cut and paste the letter to the shareholders.  You need to report your analysis.    All papers will be evaluated on originality.  Plagiarism will not be tolerated.  Be very cautious about using block quotes. Block quoting is not writing, it is copying.   Papers that rely on block quoting will not be severely marked down.  Approximate worth 45%
• Grammar and presentation. Approximate worth 10%

Work output:

 

1.    Excel spreadsheet with clear ratio analysis performed so it can be graded

 

2.    Word document – in-depth Financial Statement analysis report 

 

Due at end of week 6 (2/15/15); worth 100 points.