Review the notes of Financial Statement Analysis written by Dr. Anas AlQudah and respond to the following questions:
Require:
Company: Google
1- In the excel sheet: by using the FASB tamplet the data must be filled with the numbers (Balance sheet data, income statement data, statement of cash flow data, SUPPLEMENTAL DATA) , then automatically the next sheet ( analysis) will filled.
2- In the word document: 2000 words
Profitability and risk analysis:
A detailed analysis of the company’ profitability and risk positions using financial ratio analysis and common size financial statements.
This should also include locating and discussing the different risk factors to which the company is exposed.
The teaching methodologies of this course will include readings and active lecture/discussion sessions throughout the course to establish important groundwork in the conceptual frameworks and analytical tools of the course. Students will apply these frameworks and tools extensively on assigned project for the selected Company, which comprise the major components of the ACT 450.
In other words, this project is primarily concerned with assessing students’ ability to seek, gather, and analyse financial data using appropriate techniques. It also assesses students’ skill to plan a research project working as a member of a group (each team should consist of 4 students). The task involves the analysis of a specific company’s financial position and performance.
As a group, students will choose a US merchandising or industrial listed company (or other after consultation with the instructor). The Team will download all the required financial statements, historical share price data, and other related data that may be relevant and useful for the preparing a comprehensive report. The students should refer to the text book used in this course for the financial statement techniques
Wahlen, Baginski & Bradshaw, Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective (with Thomson One Printed Access Card), 7th Edition, South-Western Cengage Learning, ISBN-13: 978-0-324-78941-6
4 ACT 450 – Financial Statement Analysis - AUM Academic Projects
Academic Year: 2015-2016
Full Description:
Each Team of 4 students would be assigned a Company from the US Fortune 100 list. The Teams would be required to retrieve related financial and non-financial information on the selected Company from their websites. Each Team will apply the six-step analytical framework that is the logical structure for financial statement analysis and valuation. With a view to accomplish an effective financial statement analysis on the selected Company each team must apply the following six interrelated sequential steps:
i. Identify the economic characteristics and competitive dynamics of the industry in which the selected Company participates.
ii. Identify the strategies the Company pursues to gain and sustain a competitive advantage.
iii. Assess the quality of the Company’s financial statement.
iv. Analyse the current profitability and risk of the Company using information in the financial statements (FSAP Software).
v. Prepare forecasted financial statements using the FSAP Software.
vi. Value the Company using the FSAP Software.
The analysis should start with a description of the company in order to help investors understand the business, its industry, its motivation and any edge it might have over its competitors. These factors can prove invaluable in helping to explain why a company might be a profitable investment or not. It is surprising how rare it is for industry experts to refer to original company filings for important details, even in a company’s annual report. More valuable detail can be obtained from industry trade journals, reports from key rivals and other analyst reports.
In order to also capture the key fundamentals which describe a company, look to Michael Porter; The Porter’s Five Forces model which helps explain a company’s place within its industry. Specifically, the factors include the threat for new entrants to enter the market, the threat of substitute products or services, the extent to which suppliers are able to influence the company and the intensity of rivalry among existing competitors.
The Teams are required to carefully review all the financial reports and other related documents of the assigned Company to prepare a qualitative analysis on the project. Each Team will also present the output of the FSAP software (Financial Statement Analysis Package) which is an Excel add-in model.
The FASP software will enable each Team to enter financial statement data, after which the model computes a wide array of profitability and risk ratios and create templates for forecasting future financial statements and estimating a variety of valuation models.
Attachment:- fsap-template.xlsx