Financial statement analysis and decision making activity

Financial Statement Analysis and Decision Making Activity Grading Guide ACC/561 Version 7

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Financial Statement Analysis and Decision Making Activity Grading Guide

ACC/561 Version 7

Accounting

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Learning Team Assignment: Financial Statement Analysis and Decision Making Activity
Purpose of Assignment
The activity requires students to perform research and analysis on competing companies and the potential implications of international standards. This real-world analysis is key to understanding how a company’s profitability, liquidity, and solvency can be useful for all users. Students also learn to analyze financial statements and use managerial tools to make decisions from an investor’s and creditor’s standpoint.

Resources Required
U.S. Securities and Exchange Commission

Annual Reports (AnnualReports.com)

Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Grading Guide
Content

Met

Partially Met

Not Met

Comments:

Select two competing companies, one of which must be an international company, and locate annual reports for these two companies on the Internet.

Researched the two companies on the Internet and downloaded the Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and Statement of Cash Flows.

Made a 5-year trend analysis for each company, using 2011 as the base year, of:

· Net sales.

· Net income. Discuss the significance of the trend results.

Computed for 2015 and 2014 the:

· Debt to assets ratio.

· Times interest earned. Answered the following question:

· How would student evaluate each company’s solvency?

Compute for 2015 and 2014 the:

· Profit margin.

· Asset turnover.

· Return on assets.

· Return on common stockholders’ equity. Answered the following question:

· How would student evaluate each company’s profitability?

Evaluated the financial opportunity presented

by the companies. If student were a creditor,

which company would student be more likely

to lend money to? Defended decision.

Answered the following question:

· Which company student would recommend as an investment? Discussed

the items that were considered in student’s decision.

Researched global implications for the

international company selected. Answered

the following question:

· How might changing environmental factors affect organizational choices?

Considered the ethical climate (internal or

external) of student’s chosen companies.

Described the ethical issues and impact on

the stakeholders. Answered the following questions:

· What has been/is being done to resolve these issues?

· Does student agree with these methods for resolution? If not, what might student do differently?

Showed work in Microsoft® Word or Excel®. Completed calculations/computations using Microsoft® Word or Excel®.

Included the four financial statements along with assignment.

The examination is a minimum 525 words in length.

Total Available

Total Earned

7

#/7

Writing Guidelines

Met

Partially Met

Not Met

Comments:

The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.

Intellectual property is recognized with in-text citations and a reference page.

Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.

Sentences are complete, clear, and concise.

Rules of grammar and usage are followed including spelling and punctuation.

Total Available

Total Earned

3

#/3

Assignment Total

#

10

#/10

Additional comments: