There are three tasks to complete in this project:
(1) Use the basic tools discussed in class to analyze the current conditions at the company; and
(2) Identify problems and potential problems at the company, and proposal action plans to deal with existing problems and potential problems;
(3) Use market information to predict the future (the next quarter) financial situations of the company (prepare a pro forma Income Statement).
When preparing the pro forma Income Statement of the company:
(1) Gather current market information on the company's products and predict future prices of the company's products. If following analysts reports, the reasoning and results of the reports should be summarized and presented in the project;
(2) Predict the company's future production and calculate predicted revenues;
(3) Predict the other items on Income Statement based on the trends, current market information and your proposed action plans;
(4) Calculate the company's predicted Net Income in the next quarter.
Financial Analysis Project
Purposes:
1. This project will help business students understand the basic tools in financial analysis & prediction.
2. Business students will learn to use the basic tools to identify (potential) problems at a company.
3. Business students will explore the impact of uncertain factors on a company's future financial performance.
Instructions for the project:
1. Students should finish the project independently.
2. There are three tasks to complete in this project:
(1) Use the basic tools discussed in class to analyze the current conditions at the company; and
(2) Identify problems and potential problems at the company, and proposal action plans to deal with existing problems and potential problems;
(3) Use market information to predict the future (the next quarter) financial situations of the company (prepare a pro forma Income Statement).
3. When preparing the pro forma Income Statement of the company:
(1) Gather current market information on the company's products and predict future prices of the company's products. If following analysts reports, the reasoning and results of the reports should be summarized and presented in the project;
(2) Predict the company's future production and calculate predicted revenues;
(3) Predict the other items on Income Statement based on the trends, current market
information and your proposed action plans;
(4) Calculate the company's predicted Net Income in the next quarter.
Attachment:- Imcome & Assets.rar