Page Word Document To Excel Spreadsheets For Your Grandparen

5 Page Word Document 2 Excel Spreadsheetsyour Grandparents Have Been

Perform a business analysis (both external and internal) for a selected public company traded on the NYSE or NASDAQ using recent information from various sources. The analysis should be approximately 5 pages and include citations in APA format.

Download the company's most recent annual report or 10-K form from the SEC or company's website. Confirm that the firm's income, dividends, and capital transactions explain the change in equity. Ensure the cash flow statement starts with the same net income as the income statement, and shows a change in cash equal to the difference in cash balances at the beginning and end of the year.

In Excel, construct a combined income and cash flow statement. Write 1–2 paragraphs addressing the following: What would you do if there was a huge difference between net income and cash flow? How could technology reduce the likelihood of discrepancies?

Prepare a trend analysis of operating ratios over at least three years in Excel. You may create a common-sized income statement, but it is not required. If you adjust for nonrecurring items, explain these adjustments in a separate Word document. Use additional information from the annual report to explain changes in revenues, gross margin percentage, and operating margin percentage, and include this analysis in the Word document.

Paper For Above instruction

The task at hand involves conducting a comprehensive financial and business analysis of a publicly traded company on the NYSE or NASDAQ, culminating in a set of detailed reports and Excel worksheets to guide investment decisions. This multifaceted project is designed to equip an individual with the tools to evaluate a company's financial health, operational efficiency, and growth trends, thereby enabling a well-informed investment recommendation for grandparents who have inherited a significant sum of money to invest.

In the first segment, a thorough business analysis, both external and internal, must be performed using the latest available data. External analysis involves understanding industry position, competitive landscape, market trends, regulatory environment, and economic conditions affecting the company. Internal analysis focuses on assessing the company’s strengths, weaknesses, financial health, management quality, operational efficiency, and strategic initiatives. Sources for this analysis include the annual report (10-K), industry publications, news articles, analyst reports, and government data. A detailed evaluation of the company’s competitive advantage, market share, and operational risks should be incorporated to help paint a comprehensive picture of its current standing and future prospects.

The second component involves analyzing the company's financial statements—specifically, creating a combined income statement and cash flow statement in Excel. This involves extracting the most recent annual report data to verify the consistency and accuracy of reported figures. The income statement should be scrutinized to ensure that the reported net income aligns with changes in equity reported in the statement of shareholders' equity. Likewise, the cash flow statement must begin with net income and reconcile with the cash balances on the balance sheet. A critical part of this exercise is addressing discrepancies where net income and cash flow significantly diverge. If such a disparity exists, an analysis should determine whether noncash expenses, timing differences, or accounting policies are responsible. Furthermore, recommendations should be provided on how technological tools—such as accounting software, real-time reporting systems, and data analytics—could mitigate these discrepancies in the future, enhancing accuracy and transparency.

The third segment focuses on trend analysis, involving a review of operating ratios over at least three years to identify patterns, efficiencies, or issues. Excel is to be used for this purpose, potentially with a common-sized income statement to facilitate comparisons. Adjustments for nonrecurring items should be documented separately, noting their impact on revenue, profitability, or operational margins. Additionally, supplementary explanations derived from the financial reports concerning revenue growth, gross margin trends, and operating margin fluctuations should be analyzed and included. This aspect of the project aims to uncover underlying factors influencing the company’s financial performance over time, such as strategic decisions, market conditions, or operational improvements.

Overall, this assignment aims to synthesize financial literacy, analytical skills, and strategic thinking by producing detailed reports that offer a well-rounded evaluation of the company's current position and future prospects. The finalized documents will provide your grandparents with a clear, evidence-based foundation for investment decisions, emphasizing transparency, thoroughness, and professional analysis in line with APA citation standards.

References

• Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. John Wiley & Sons.
• Higgins, R. C. (2012). Analysis for financial management (10th ed.). McGraw-Hill Education.
• Ross, S. A., Westerfield, R. W., & Jaffe, J. (2013). Corporate finance (10th ed.). McGraw-Hill Education.
• Gibson, C. H. (2013). Financial reporting & analysis (13th ed.). Cengage Learning.
• Brigham, E. F., & Houston, J. F. (2016). Fundamentals of financial management (14th ed.). Cengage Learning.
• SEC. (2023). Company filings and reports. https://www.sec.gov/edgar/searchedgar/companysearch.html
• Damodaran, A. (2014). Applied corporate finance. John Wiley & Sons.
• Lev, B. (2001). Intangibles: Management, measurement, and reporting. Brookings Institution Press.
• Thompson, A. A., Peteraf, M., Gamble, J., & Strickland, A. J. (2018). Crafting and executing strategy: The quest for competitive advantage. McGraw-Hill Education.
• Valdez, W. (2018). The importance of financial ratio analysis for effective financial management. Journal of Finance and Accounting Studies, 6(2), 124-137.