Module Case Assignment: FINANCIAL STATEMENT ANALYSIS
Overview
Choose a U.S. public company that you are familiar with or one in which you may have an interest. You will now have the opportunity to apply some of the concepts reviewed in the prior modules to the financial statements of a company of your choice. The background material in Modules 2 and 3 cover the concepts relating to the balance sheet and income statement.
Required
• Briefly explain your interest in the company and its business.
• Go to the company's website and locate the most recent annual financial statement (10-K or Annual Report). Include a screenshot of the website and a link to the financial statement in your write-up.
• Download and save the financial statement. Submit the file as separate file as part of the assignment.
• Does the corporation have an operating income or loss?
• What is the amount of total assets on the balance sheet?
• What type of the information is found in Statement of shareholders equity?
• What type of the information is found in Statement of cash flows?
• How is the statement of cash flow different than the income statement?
• The report includes a lot of information in addition to the financial statements. Provide examples of two other kinds of content and makes a brief comment about each example.
Module SLP: FINANCIAL STATEMENT ANALYSIS
Before you start the assignment, test your understanding of concepts covered in the assignment. It is not a graded quiz, but a tool for reviewing some key points. The tool can be used multiple times.
The financial statements tell a story about the financial health of a business at a given point in time. The purpose of this SLP is to apply ratio analysis to assess financial health of a publicly held corporation. Use the financial statements identified in the module four case to compute three ratios, one for each of the three following categories
• Liquidity (solvency),
• debt service, and
• profitability.
Comment on the ratios by answering the following questions. Go to IBIS, locate a U.S. specialty industry report, which you feel is appropriate for the company you are analyzing. Use the statistics tab to view the ratios.
1. Name the company and show the computation of the three ratios.
2. Comment on the purpose and information conveyed by each ratio.
3. What did you learn about the company by reviewing the three ratios?
4. What is your conclusion about liquidity, debt, and profitability for this company?
5. How successful is the company relative to the industry average and leaders in its industry? Indicate the industry and specialty industry report used for comparison. Write two paragraphs or more. Include ratios found in the IBIS database to support your conclusion.
Narrow down the information in a manner similar to prior module to find ratios for comparison.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.