Analyse the latest financial statements of a mining company


Analyse the latest financial statements of a mining company ‘Mining Projects Group Limited, MPG' and come up with a conclusion with supporting data or information whether to invest in the company or not.

General Rules & Requirements:

Reports must be confined to a maximum of 3,000 words. As a minimum the report should have the following:

A. Title page

B. Executive Summary.

C. Table of Contents

D. Introduction

E. Body

F. Conclusion

G. Reference List

H. Appendix

Font type should be Arial (size 11), paragraph spacing should be 1.5.

Note: Any additional material from external sources that you "copy & paste" into your report should be appropriately referenced and is NOT included in the word limit.

Financial Statement Analysis

Part 1

Provide an executive summary which will include overview of subject matter, methods of analysis, findings and recommendations.

Part 2

Use the latest annual report. The group will need to review the major sections of this report in order to be familiar with the content of each of the financial statements including notes and disclosures.

Review the balance sheet of the company and indicate the total amount of the following:

a) Current assets

b) Non-current assets

c) Current liabilities

d) Non-current liabilities

e) Stockholder's equity

Compare the above figures with the previous year and compute the percentage increase or decrease and comment on the comparative financial condition of the company.

Part 3

Review the income statement and indicate the following:

a) Total (operating) revenues

b) Cost of Goods Sold (if relevant)

c) Total expenses (before income taxes)

d) Any non-operating (or extraordinary) gains and losses e) Earnings per common share

Compare the above figures with the previous year and compute the percentage increase or decrease and comment on the comparative financial operation of the company.

Part 4

Review the statement of cash flows for the most recent year and indicate the following:

a) Net cash inflow (outflow) from operating activities b) Net cash inflow (outflow) from financing activities c) Net cash inflow (outflow) from investing activities d) Net increase (decrease) in cash during the year

Analyse the Cash Flow Statements for the last 2 years and comment on the cash position of the company.

Part 5

Review the stockholders' equity section in your chosen company's most recent year-end balance sheet and compare that with the previous year-end balance sheet. Compare percentage increase or decrease.

List the stockholders' equity account balances and number of outstanding shares from these two balance sheets and compute the increase or decrease for each during this past year.

8+ references

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Accounting Basics: Analyse the latest financial statements of a mining company
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