QUESTION
Select a company from the list of companies that are in the attached file for the requirements. Go to a website that reports the companyâs latest annual report. Compute the ratios for the two most recent years. Document the results of the ratios analysis, and then interpret the ratio analysis by addressing and answering the questions that are in the Week 6 individual assignment in Doc Sharing. Your paper should be a minimum of three to four pages (not including a cover page and bibliography).Week 6
Financial Statement Analysis Paper Individual Assignment
One basic method that an accountant can
use to analyze the financial situation of a business is ratio analysis. This
can be a useful tool no matter the type of legal structure of the business and
regardless of whether or not ownership is public or private. To help assure the
availability of the necessary data, though, this assignment will be focused
solely on a publicly-traded company.
As an overview, you will choose a publicly
traded company from a list provided at the end of this assignment. Locate the
companyâs website, retrieve the latest companyâs annual report from that site,
calculate specific ratios for the latest two fiscal years, and respond to a
limited number of analysis questions.
Please note that this entails far more
than finding pre-calculated ratios from a website such as Yahoo! Finance or
Google Finance. If you desire, you can use such a site for a reasonableness
check on the results of your calculations, but any such comparisons should not
be part of your resulting paper. Also, you might not match exactly to their
figures anyway since those may include quarterly updates.
The paper should be three-to-four double-spaced
pages (not counting the cover page and bibliography) in Word doc using a
standard font (11 or 12 point) and appropriate margins (e.g., no more than
one-inch). APA formatting should be followed. The paper should include a
section for the ratio calculations and a section to respond to questions. You
should also include a cover page and a bibliography.
Your paper should be properly cited using
APA referencing style. This means that the citation should be in a bibliography
â and in the body of the paper if you refer to or directly quote any
information, terms, etc. from others.
Submit your paper to the W6_Individual_Assignment
Dropbox no later than midnight Sunday at the end of Week 6.
For the section showing the ratio
calculations, provide appropriate details regarding the formula used, the
source of the data, and the resulting calculations. Although you are certainly
welcome and encouraged to use Excel to complete these tasks, copying and
pasting from Excel into the Word document is discouraged unless it can be done
in a manner that is cosmetically appropriate.
The requirements for the ratio analysis
section are:
1. Compute the following for each of the two most recent years:
·
Profit Margin
·
Return on Shareholdersâ Equity
·
Current Ratio
·
Interest Coverage Ratio
2. Document your work by including items such as:
·
The website for the company
·
The web page link for the
annual report (or file name if a PDF is downloaded)
·
The page number of the annual
report (rather than the PDF) for each number used
·
Appropriate details of the
calculations
The questions that should be addressed
in the second section of the paper are:
1. If you were an accountant for a potential vendor for this company,
explain which of these ratios would be of the most interest to you. Would there
also be a second ratio of interest to you?
2. If you were an accountant for a potential investor in this company,
explain which of these ratios would be of the most interest to you. In your
opinion, what other ratio or ratios beyond the ones listed above should also be
considered in an investment context?
3. What is your overall opinion of this company based on the limited
analysis completed via the four ratios? Feel free to mention any questions that
you feel should still be considered in view of the ratios and/or the changes
from one year to the next.
Please also consider these suggestions
for your success on this assignment:
o If you choose a company from the list and have any trouble finding
its website, the annual reports, or specific information, consider selecting a
different company from the list instead.
o If the company has subsidiaries, be sure to use the consolidated
financial statements.
o Be sure to use the financial statements rather than summaries
elsewhere in the annual report.
ACCT601
Lists
of companies for the financial statement analysis individual assignment.
List #1
Barnes & Noble, Inc.
Intuit Inc.
The Kroger Co.
Macyâs Inc.
Zale Corporation
List #2
Dell Inc.
Family Dollar Stores Inc.
Kodiak Oil & Gas Corp.
Tractor Supply Company
Verizon Communications Inc.
ANSWER:
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