Financial statement analysis package fsap

Financial Statement Analysis Project

MBA 560 Financial Statement Analysis Project As a group of 3-5, you are to act as a financial advisor to a client interested in investing in a specific industry. Your group of 3-5 will research 2 separate companies in the same industry and provide a recommendation to your client which company, if any, your team should invest in. Some possible industries include: Industry Companies (American Companies or foreign companies with U.S. Division) Airline American/Southwest Airlines/United Fast Food Wendy’s/McDonalds Search Engine Google/Yahoo Pharmaceutical Merck/Pfizer/Bristol Myers Squibb Auto Ford/GM Retail Gap/Guess/Abercrombie Beverage Coca Cola/Pepsi Phone Apple/Samsung Publishing Pearson/McGraw-Hill Others? Please confirm with your teaching faculty Your team may select other companies or another industry. Each team in the class must select a different company. Companies must be publicly traded companies. PART A: Write a page instruction of each company background in APA format. PART B: Obtain Financial Statements Obtain 3 years of financial statements (just the Balance Sheet and Income Statement) for your company from SEC.GOV. 3 BALANCE SHEETS AND 3 INCOME STATEMENTS will be submitted. One set per company. PART C: Enter data into FSAP (Financial Statement Analysis Package) Financial Statement Analysis Package (FSAP): Version 7.0. 2, Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 7th. Student can download from the link below: www.cengage.com/resource_uploads/downloads/0324789416_247806.xls Enter the Balance Sheet and Income Statement amounts for 3 years into the Financial Statement Analysis Package Excel file (just the Balance Sheet and Income Statement information, not the Statement of Cash Flows). Make sure your balance sheet BALANCES!!!! Make sure your Net Income matches your Net Income on the Income Statement. Email one FSAP per company. PART D: Company Analysis 3 Focus more on their position within the industry, recent developments, fluctuation in stock prices relative to the market/industry, and other items of significance that would impact your investment decision. Legal issues facing the company. New markets and new products. (4 pages – APA format). Submit 1 paper per team. PART F: Industry Analysis Summarize the economic outlook for your industry. Look at recent market activity, recent indicators impacting your industry. Address recent change in stock prices. Obtain industry averages for your ratio and common size analysis. Identify laws/regulations impacting your industry. Identify market trends and geo/political events impacting your industry. Identify Micro/Macro economic conditions impacting your industry. DO NOTE WRITE ABOUT YOUR INDIVIDUAL COMPANIES. (2 pages – APA format). Submit 1 paper per industry. Data sources: Standard and Poor’s Stock Reports or other Industry Surveys, Mergent’s Industry Review. Finance.yahoo.com, moneycentral,msn.com, hoovers.com, and other financial websites. Examine recommendations of other investment websites (buy/sell/hold). SECTION B: FINAL PAPER OUTLINE (Merged all sections into a single APA paper) A. Write a page instruction of each company background in APA format (1 page in APA format). B. Include Company Analysis (address prior comments) C. Include Industry Analysis (address prior comments) D. Include FSAP summary – Create tables summarizing the analysis tab of your FSAP. Make it look professional. (You are not required to include the whole report in your final research project.) E. Write a summary of the significant findings from the financial statement analysis. (4 pages APA format). Address significant (Focus on the 2-4 items under each) Ratios, Horizontal Analysis, and Common Sized Analysis from the FSAP (look under the Analysis Tab).  Do not address all the ratios and every line of vertical and horizontal analysis, just what you feel is important. F. Conclusion: Based on your findings and after reading the other papers in your group, which company, if any, would you invest in? Include specific support for your decision based on your findings in the analysis. Also include support (for or against) investing in the industry you chose. 4 GRADING DO NOT COPY, DO NOT PLAGIARIZE, CITE APPROPRIATELY!!

Assessment Project (15%):

A final project will be assigned involving the students to analyze and make decisions using financial statements. Financial Statement ratios, common size analysis, and vertical analysis will be used to form a conclusion. Results of the analysis should be presented and defended. Your teaching faculty will go over the project in class. If you have questions about any part of the assignment, please do not hesitate to ask your faculty to clarify it fully.

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Section A: MBA 560

Financial Statement Analysis Project As a group of 3-5, you are to act as a financial advisor to a client interested in investing in a specific industry. Your group of 3-5 will research 2 separate companies in the same industry and provide a recommendation to your client which company, if any, your team should invest in. Some possible industries include: Industry Companies (American Companies or foreign companies with U.S. Division) Airline American/Southwest Airlines/United Fast Food Wendy’s/McDonalds Search Engine Google/Yahoo Pharmaceutical Merck/Pfizer/Bristol Myers Squibb Auto Ford/GM Retail Gap/Guess/Abercrombie Beverage Coca Cola/Pepsi Phone Apple/Samsung Publishing Pearson/McGraw-Hill Others? Please confirm with your teaching faculty Your team may select other companies or another industry. Each team in the class must select a different company. Companies must be publicly traded companies.

PART A: Write a page instruction of each company background in APA format.

PART B: Obtain Financial Statements

Obtain 3 years of financial statements (just the Balance Sheet and Income Statement) for your company from SEC.GOV. 3 BALANCE SHEETS AND 3 INCOME STATEMENTS will be submitted. One set per company.

PART C: Enter data into FSAP (Financial Statement Analysis Package) Financial Statement Analysis Package (FSAP): Version 7.0. 2, Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 7th. Student can download from the link below: www.cengage.com/resource_uploads/downloads/0324789416_247806.xls

Enter the Balance Sheet and Income Statement amounts for 3 years into the Financial Statement Analysis Package Excel file (just the Balance Sheet and Income Statement information, not the Statement of Cash Flows). Make sure your balance sheet BALANCES!!!! Make sure your Net Income matches your Net Income on the Income Statement. Email one FSAP per company.

PART D: Company Analysis

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=2ahUKEwi8kpDd8PriAhWoV98KHcP2D3UQFjAAegQIARAC&url=http%3A%2F%2Fwww.cengage.com%2Fresource_uploads%2Fdownloads%2F0324789416_247806.xls&usg=AOvVaw0NB4H0Of3b6bolsNQh6AoK
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Focus more on their position within the industry, recent developments, fluctuation in stock prices relative to the market/industry, and other items of significance that would impact your investment decision. Legal issues facing the company. New markets and new products. (4 pages – APA format). Submit 1 paper per team.

PART F: Industry Analysis

Summarize the economic outlook for your industry. Look at recent market activity, recent indicators impacting your industry. Address recent change in stock prices. Obtain industry averages for your ratio and common size analysis. Identify laws/regulations impacting your industry. Identify market trends and geo/political events impacting your industry. Identify Micro/Macro economic conditions impacting your industry. DO NOTE WRITE ABOUT YOUR INDIVIDUAL COMPANIES. (2 pages – APA format). Submit 1 paper per industry.

Data sources: Standard and Poor’s Stock Reports or other Industry Surveys, Mergent’s Industry Review. Finance.yahoo.com, moneycentral,msn.com, hoovers.com, and other financial websites. Examine recommendations of other investment websites (buy/sell/hold).

SECTION B: FINAL PAPER OUTLINE (Merged all sections into a single APA paper)

A. Write a page instruction of each company background in APA format (1 page in APA format).

B. Include Company Analysis (address prior comments) C. Include Industry Analysis (address prior comments) D. Include FSAP summary – Create tables summarizing the analysis tab of your FSAP.

Make it look professional. (You are not required to include the whole report in your final research project.)

E. Write a summary of the significant findings from the financial statement analysis. (4 pages APA format). Address significant (Focus on the 2-4 items under each) Ratios, Horizontal Analysis, and Common Sized Analysis from the FSAP (look under the Analysis Tab).  Do not address all the ratios and every line of vertical and horizontal analysis, just

what you feel is important. F. Conclusion: Based on your findings and after reading the other papers in your group,

which company, if any, would you invest in? Include specific support for your decision based on your findings in the analysis. Also include support (for or against) investing in the industry you chose.

4

GRADING

DO NOT COPY, DO NOT PLAGIARIZE, CITE APPROPRIATELY!! USE APA Final paper will be submitted to turnitin.com Due % PART A- Introduction 5% PART A – Financial Statements 15% PART B – FSAP 15% PART C - Company Analysis 15% PART D - Industry Analysis (2 Companies submit one)

15%

PART F: FINAL ESSAY - Analysis using Ratio, Common Sized, and Vertical Analysis – Decision

15%

Section B: Financial Statement Analysis Presentation

For the presentation, you will get into group of 3 to 5 team members. You will then select two companies from the same industry on which you will perform financial statement analysis from Section A. Your team will then present your findings, including an overview of the companies, on the last day of classes.

Presentation Rubric (20%) Evaluating Student Presentations

Department of Accounting, Business Information Systems, and Marketing

Criteria Unacceptable

0-3

Acceptable

4-7

Exemplary

8-10

Total Points

1) Introduction

Student does not introduce topic and offers no components for discussion.

Student introduces topic and begins presenting but does not clearly state all variables for discussion.

Student completely introduces topic and clearly states 3 to 4 components for discussion.

2) Organization

Audience cannot understand presentation because there is no sequence of information.

Student presents all components but not in a logical sequence (audience has some difficulty following

Student presents information in logical, interesting sequence which audience can follow.

5

presentation).

3) Dress and

Appearance

Student was not professionally dressed and properly groomed.

Student was professionally dressed but displayed one or more distracting accessories.

Student was professionally dressed devoid any distracting accessories.

4) Subject

Knowledge

Student does not have grasp of information; student cannot answer questions about subject.

Student is able to answer rudimentary questions and appears uncomfortable with the topic of discussion.

Student demonstrates full knowledge (more than required) by answering all questions with explanations and elaboration.

5) Graphics Student uses superfluous graphics or no graphics

Student occasionally uses graphics that rarely support text and presentation.

Student's graphics explain and reinforce screen text and presentation.

6) PP Slides and/or other Visual

Student's slide presentation (or handout) has four or more spelling errors and/or grammatical errors. Less than half of the slides follow PP rules (1 topic, 4 to 6 bullets slide).

Slide presentation (or handout) has three misspellings and/or grammatical errors. More than half of the slides follow PP rules.

Slide presentation (or handout) has no misspellings or grammatical errors. All slides follow PP rules.

7) Eye Contact

Student reads all of report with no eye contact.

Student occasionally uses eye contact, but still reads most of report.

Student maintains eye contact with audience, seldom returning to notes.

8) Voice

Production and Grammar Usage

Student does not effectively articulate, incorrectly pronounces terms, and uses slang and/or idiosyncrasies.

Student's voice is low. Student incorrectly pronounces terms. Audience members have difficulty hearing presentation.

Student uses a clear voice and correct, precise pronunciation of terms so that all audience members can hear presentation.

9) Conclusion

Student offered no conclusion and ended presentation without appropriate closing.

Student offered a presentation summary but did not reiterate variables that were discussed and/or brought in new information.

Student clearly summarized presentation by briefly reiterating all variables discussed—without bringing in new information.

10) Overall Deliverance

Student uses no gestures, no examples, and displays poor voice characteristics and a lack of confidence.

Student uses some gestures, doesn’t show complete confidence and presents with little enthusiasm. Examples were used but some did not relate to presentation topic.

Student presents with poise and confidence and uses appropriate gestures, posture, volume resonance, and stimulating examples that relate to the topic.

Total Points:

LEDGER FOR TOTAL POINTS SCORED

0-39 points = Unacceptable

6

40-79 points = Acceptable

80-100 points = Exemplary

For the presentation, you will get into group of 3 to 5 team members. You will then select two companies from the same industry on which you will perform financial statement analysis from Section A. Your team will then present your findings, includi...
Presentation Rubric (20%)