Assignment
Part 1
Write 250-300 words-word document
Respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.
There are basically 5 categories of financial statement analysis that is employed to assess the health of companies related to their financial performance. They are generally classified as liquidity, efficiency, debt, profitability and market-based ratios.
Select 1 of the categories, and discuss the following:
What does each ratio in the category attempt to measure?
What individual ratios does it employ?
List at least 3.
Discuss each of the ratios that you have identified.
How is each calculated?
What does each measure?
What is the general rule of thumb associated is ratio?
How do you know if a ratio is improving or deteriorating?
And what are some of the weaknesses or limitations of each ratio?
Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.
Part 2
250-350 words
If a company grows too fast, it can find itself without access to the resources it needs to meet its obligations. If it grows too slowly, it may find itself missing strategic as well as tactical opportunities. Calculating and understanding a firm's optimal or sustainable growth rate is critical to the goal of maximizing shareholders' wealth and developing an optimal capital structure. You senior analyst has asked you to do some research in this area and to share what you have learned with the other junior analysts on staff through the company discussion board. She has asked you to research and address the following topics in your posts:
What is sustainable growth, and why is it important to calculate and understand this rate?
What is the sustainable growth equation, what are its components, and how is it calculated?
What are the consequences of growing a firm too fast or too slow?
If a company grows too fast, what funding alternatives are generally available?
If a company grows too slow, what steps should it take to maintain its stock price?
Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.
Part 3
1 excel spreadsheet and 600 words -word document
Access the Apple's Web page on the Internet to read its most recent annual report. The annual report is typically found in an "Investor Relations" or "Company Information" section within the company's Web site.
To look up any publicly traded company's documents for additional consideration. Complete the following:
Using the company's financial statements, construct a pro forma income statement and balance sheet for the company using the percentage-of-sales method.
Be sure to include the original statements along with a defendable sales forecast.
Upon completion of the financials, write a paper detailing the process and what you learned about the company as you work through this activity.