19 Jun Master Class: Financial Statement Analysis
Your grandparents have been left a substantial amount of money and want to invest in a company. Your grandfather trusts you to make a recommendation, but he also wants to see the reasoning behind your choice.
You have an idea of which company to choose, and you decide to prepare 3 sets of documents for your grandparents to consider: business analysis, combined income and cash flow statement, and trend analysis.
Business Analysis
Select a public company that trades on either the NYSE or the NASDAQ. Perform a business analysis (both external and internal) for your company using the most recent information from various sources. Possible sources include the following:
Annual report or form 10-K
Magazine or newspaper articles
Company Web sites
Government information
Industry information
Rating agencies
Analyst reports
Internet articles
Your analysis should be approximately 5 pages long. Be sure to cite your sources using APA guidelines.
Combined Income and Cash Flow Statement
Download the company’s most recent annual report from its Web site or the company’s form 10-K from the U.S. Securities and Exchange Commission (SEC) Web site (www.sec.gov).
Confirm that the firm’s income, dividends, and other capital transactions explain the change in equity for the most recent year. (You may need to consult the statement of shareholders’ equity.)
Confirm that the firm’s cash flow statement begins with the same net income amounts found in the income statement.
Confirm that the firm’s cash flow statement shows a change in cash that is equal to the difference between cash shown on the balance sheet at the beginning and end of the year. In Excel, construct a combined income statement and cash flow statement.
Write 1–2 paragraphs that answer the following:
What would you do if you found there was a huge difference in the net income amounts and the reported cash flow amounts?
How could technology limit the likelihood of this happening again?
Trend Analysis
Finally, prepare a trend analysis of operating ratios for at least 3 years’ worth of financial data. Prepare the analysis in Excel. You may wish to create a common-sized income statement first, but it isn’t required.
If you adjusted for any nonrecurring items in step 1, explain the adjustments in a separate Word document. Use any other information in your company’s annual report to explain the change in revenues, gross margin percentage, and operating margin percentage. Add this information to the Word document.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.