Explain the multiple drivers of the bottom-line earnings in

Question

For this assignment, use the study company approved by your facilitator in Module 1when addressing the following questions in a 10-12 page report.

Present a ratio analysis of your Study Company using data for the most recent year and the previous year. Show formulas and steps to generate each ratio. Include in your analysis, ratios that measure liquidity, profitability, and asset management. Write an analysis of the ratios and the conclusions that can be drawn by comparing the metrics of the company for the two years.

Develop the forecasted (pro forma) income statement. Use a historical average of past sales growth for the sales growth rate assumption. Explain how you formed the forecasted income statement. Define all assumptions you used in forming your forecasted statement.

Explain why the bottom-line earnings (net income) metric receives so much attention. Explain the multiple drivers of the bottom-line earnings in the forecasted income statement.

Identify at least three stakeholder groups for your company that could be impacted by company efforts to increase this bottom-line number. Explain in what way they would be impacted.

Determine if your study company follows the for-profit only model, or, the alternative business model aligned with the needs of people and planet. Justify your response.

Write a 10-12 page report in MS Word format. Apply APA standards for writing style to your work. Use the following file naming convention: LastnameFirstInitial_M5_A1.doc.

Answer 1

For this task, make use of the study company approved by your facilitator whenever addressing the given questions in around 10 to 12 page report. Represent a ratio assessment of your study company employing data for the most recent year and the prior year. Illustrate formulas and steps to make each ratio. Comprise in your assessment, ratios which measure liquidity, profitability and asset management. Provide an assessment of the ratios and the conclusions which can be drawn by comparing the metrics of the organization for the two years. Build up the forecasted (pro forma) income statement. Make use of a historical average of past sales growth for the sales growth rate supposition. Describe how you formed the forecasted income statement. State all suppositions you employed in forming your forecasted statement. Describe why the bottom-line earnings (total income) metric receives so much attention.