ACC306 – Financial Statement Analysis

USA Ussays > Uncategorized > ACC306 – Financial Statement Analysis

ACC306 – Financial Statement Analysis

ACC306 – Financial Statement Analysis

Assignment – 2016 (S1)

Introduction:

You are free to choose a particular Case Study from case selection below or conduct analysis on your own case study (with pre-approval)

  • Google
  • Apple
  • Facebook
  • Baidu.Com

Assignment:

Provide a 2000 word essay that critically evaluates firm’s performance using ratio analysis, and forecasts its likely future performance, as well as analyses its business strategy. The assignment is due in week 11, Sunday May, 15th, 2016 at 11.59am. All assignments should be uploaded onto Turnitin.

The general question you have to answer is:

Would you invest or work for the company you have chosen given its current performance (financial and non-financial?) Refer to the attached case study conduct research and present the answers to the following questions:

Question: Give an overall assessment of the company’s performance, qualitative and quantitatively. Include:

  • Collect the most recent quarterly financial statements and annual information on the ratios that make up the DuPont system (Profit Margin (PM), Asset Turnover (AT), Return on Assets (ROA), Return on Equity (ROE) and the Equity Multiplier (EM)) as well as the debt-to-assets ratio, price-to-earnings (P/E) ratio and market-to-book ratios for the case concerned and comments on the company’s horizontal and vertical comparisons.
  • Discuss the company’s financial performance using information from the MD&A (Management Discussion and Analysis) to explain the ratios (or changes to the ratios) that you calculate from the financial statements. (Please email the excel spreadsheets for this part of the assignment.
  • Construct standardized income statements for the past and future 3 years (at least). At minimum you should do this at the consolidated level. You can also do this at the segment level to know more about the different segments.
  • Please make sure to talk about significant events that affected the company’s performance in the latest fiscal year. All of the information (explanations) are available from the Management.
  • List any red flags (if any), questions you have uncovered in the course of reading the Annual report.
  • General conclusion about the performance of the company.