MBA 560 Financial Statement Analysis Project As A Group Of 3

MBA 560 Financial Statement Analysis Project As A Group Of 3 5 You Ar

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.

Paper For Above instruction

Part A: Company Background

Provide a one-page company background in APA format for each of the two selected companies. Include information such as company history, core business activities, market position, recent developments, and strategic initiatives. Ensure that the background provides sufficient context to understand the company's operations within its industry, highlighting factors that could influence investment decisions.

Part B: Obtain Financial Statements

Retrieve three years of financial statements (Balance Sheet and Income Statement) for each company from SEC.gov. Submit one set of statements per company, ensuring completeness and accuracy.

Part C: Data Entry into FSAP

Input the financial data into the Financial Statement Analysis Package (FSAP) Version 7.0, available as a downloadable Excel file. Enter only the Balance Sheet and Income Statement figures for the three-year period, verifying that the Balance Sheet balances and that Net Income matches the Income Statement. Submit one FSAP file per company.

Part D: Company Analysis

Write a comprehensive four-page analysis of each company, focusing on their market position, recent developments, stock price fluctuations relative to the industry and overall market, and significant factors affecting their performance. Discuss legal issues, new markets, product launches, and other relevant strategic moves. This analysis should highlight aspects influencing investment attractiveness and risk factors. Use APA format.

Part E: Industry Analysis

Summarize the economic outlook for the industry in two pages, emphasizing recent market activity, industry indicators, regulatory environment, and geopolitical factors impacting the industry. Include analysis of recent stock price trends, industry averages for key ratios, and common-size financial statements. Address macroeconomic and microeconomic conditions, and reference data sources such as Standard & Poor’s, Mergent, Yahoo Finance, and others. Do not discuss individual companies here.

Part F: Final Paper

Integrate all prior sections into a cohesive APA-formatted paper, including:

  • Company background (Part A)
  • Company analysis (Part D)
  • Industry analysis (Part E)
  • FSAP summary and tables
  • Summary of key findings from financial analysis (about four pages)
  • Conclusion and investment decision recommendation, supported by analysis findings, and industry outlook.

> Ensure the document is well-organized, professionally formatted, and thoroughly cited.

References

  • Focuse, N. (2019). Financial Statement Analysis and Security Valuation. CFA Institute Investment Series.
  • Higgins, R. C. (2018). Analysis for Financial Management. McGraw-Hill Education.
  • Penman, S. H. (2013). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.
  • White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements. John Wiley & Sons.
  • Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. Wiley Finance.
  • Gibson, C. H. (2019). Financial Reporting and Analysis. Cengage Learning.
  • Palepu, K. G., & Healy, P. M. (2019). Business Analysis & Valuation Using Financial Statements. Cengage Learning.
  • Stock, J. H., & Watson, M. W. (2019). Introduction to Econometrics. Pearson.
  • Standard & Poor's. (2022). Industry Surveys and Reports. S&P Global Market Intelligence.
  • Yahoo Finance. (2023). Company and Industry Data. Yahoo! Finance. https://finance.yahoo.com

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