Signature assignment financial statement analysis and firm performance

Financial Statement Analysis And Firm Performance

About Your Signature Assignment

Signature/Benchmark Assignments are designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. Signature/Benchmark Assignments are graded with a grading guide or an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for course/program improvements.

Assignment Steps

Resources: Microsoft® PowerPoint®, Signature Assignment: Financial Statement Analysis and Firm Performance Template

First, prepare a 12 to 16 slide Microsoft® PowerPoint® presentation with speaker notes (approximately a 5 minute presentation) showing the details of a business you are interested in starting in a foreign country, and for which you need $300,000. The business can either be an original concept - or an extension of an existing business. The presentation should include the following information:

Business name
Executive summary
Description of the foreign country
Business description and structure
Market and company analysis
Marketing and sales operational plan
How you plan to use the $300,000
Financial statements forecast (3 years)
Business health assessment - using the following ratios:
Liquidity ratios
Solvency ratios
Asset management ratios
Profitability ratios
Market value ratios
Format your presentation consistent with APA guidelines. Please note that Title and Reference slides do not count toward the requirement of 12 to 16 slides. See my Announcement at the beginning of week for help with this area related to APA formatting.

Next, using the template provided - calculate (using functional formulas), analyze, and briefly discuss the following scenarios on the Comparison sheet (3rd tab in the spreadsheet - APA does not apply), including which one would you choose and why, and which financing option is best for your business:

Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years.
Investor #2 offers you the $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year.
Finally, discuss in a 600 word paper the challenges and risks you may face in starting a business in a foreign country including the following:

Cultural, business, and political risks.
How you plan to avoid operational, transaction, and translation exposure.
Cite at least two academic sources in your paper and slide presentation with one being from our textbook - and utilize the University Library when practical. Be certain to include both in-text citation work and formal references supporting them. Please note that no citation/reference work is required in the spreadsheet notes you provide.

Format your paper consistent with APA guidelines. Please note that Title Pages and References do not count toward word count requirements.

Scenario 1
Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years
Amount $ 300,000
Period (years) 5
Interes rate 8%
FV = PV × (1 + r)n
Answer - Total Payment
Interest Paid
Scenario 2
Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year;
Amount $ 300,000
Period (years) 5
Interes rate 8%
Answer
Annual Interest Payment -
Year 5 Payment -
Total Payment -
Interest Paid -
Comparison
Total Payment Interest paid
Scenario #1 $ - 0 $ - 0
Scenario #2 $ - 0 $ - 0
Which of the scenarios is the best option?
Answer: