BA 211 Fundamentals Of Financial Accounting Project 2 Instru

Ba 211 Fundamentals Of Financial Accountingproject 2instructions1 T

Analyze and present the required information in Excel by researching the company associated with the last digit of your student ID from the provided Company List. Use financial data from the company's most recent 10-K report, including data for the current and prior years. Submit the completed Excel file via the D2L dropbox.

Paper For Above instruction

The objective of this assignment is to develop and apply financial accounting skills by analyzing publicly available data to assess the financial health and performance of a listed company. The process involves identifying relevant financial information, calculating key ratios, interpreting these ratios, and drawing conclusions about the company's overall financial condition.

To begin, students must determine their assigned company based on the last digit of their student ID. They should then gather detailed information about the company by visiting the company's official website, reviewing filings with the Securities and Exchange Commission (SEC), particularly the 10-K reports, and consulting credible financial databases. The research should focus on extracting accurate and recent financial data for both the current and prior fiscal years to facilitate year-over-year comparisons.

The first step involves collecting general company information, including the legal name, business description, ticker symbol, and the stock exchange on which it is traded. This foundational data provides context for understanding the company's operations and market position. Next, students should analyze the income statement, capturing metrics such as total revenue, cost of sales, gross profit, depreciation and amortization, income tax provisions, and net income for both years. These figures offer insights into the company's profitability and operational efficiency.

Similarly, the balance sheet data must be compiled, including total current assets, total assets, current liabilities, total liabilities, preferred stock, common stock, and retained earnings. These balance sheet figures serve to assess the company's asset base, liquidity, and leverage. The ratios derived from these figures—such as net profit margin, gross profit margin, fixed asset turnover, return on equity, receivables turnover, current ratio, and debt-to-assets ratio—are crucial indicators of financial performance and stability.

All calculations should be performed using Excel to ensure accuracy and facilitate data manipulation. These ratios help to evaluate profitability, efficiency, liquidity, and solvency, providing a comprehensive picture of the company’s financial health.

Finally, students must interpret their findings by commenting on the company's overall financial condition, referencing the calculated ratios. They should analyze how the company's financial health evolved from the prior year to the current year. Based on this analysis, students are expected to form a reasoned judgement regarding whether or not to invest in the company, citing specific financial indicators to support their decision.

It is essential to document all sources used for data collection, adhering to appropriate citation standards. The final deliverable is an Excel file containing all the compiled data, calculations, and concise written analysis that addresses each component of the assignment prompt comprehensively.

References

  • SEC.gov. (2023). Form 10-K: Annual Report. U.S. Securities and Exchange Commission. https://www.sec.gov/filings
  • Higgins, R. C. (2019). Principles of Financial Management (13th ed.). McGraw-Hill Education.
  • Penman, S. H. (2012). Financial Statement Analysis and Security Valuation (5th ed.). McGraw-Hill Education.
  • Brigham, E. F., & Houston, J. F. (2020). Fundamentals of Financial Management (15th ed.). Cengage Learning.
  • White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements (3rd ed.). Wiley.
  • Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). Wiley.
  • Chen, H., & Zhang, Y. (2021). Corporate Financial Ratios and Performance: An Empirical Study. Journal of Financial Analysis, 77(4), 89-105.
  • Statista. (2024). Company Financials and Ratios. https://www.statista.com/
  • Bloomberg. (2024). Financial Data & Analysis. https://www.bloomberg.com/
  • Yahoo Finance. (2024). Company Financials. https://finance.yahoo.com/

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