Question
Need by 11:00pm EST Purpose: This assignment will introduce you to the concepts of financial statements analysis, help you develop knowledge and skills associated with
Need by 11:00pm EST
Purpose:
This assignment will introduce you to the concepts of financial statements analysis, help you develop knowledge and skills associated with financial statement analysis, provide a comprehensive example that can be used for application of previously learned concepts and skills, and foster your collaboration and communication skills. You will use the knowledge and skills listed below:
Horizontal and vertical analysis
Ratio analysis for liquidity, solvency, profitability, and stock
Income Statement components of Revenue, Cost of Goods Sold, Gross Margin, Operating Expenses, and Net Income
Balance Sheet components of Short-term Assets, Long-term Assets, Current Liabilities, Long-term Liabilities, Retained Earnings, and Stockholders Equity
The limitations of Financial Statement Analysis
Comparing and analyzing the results for financial statement analysis computations
Evaluating the results of financial statement analysis and producing a conclusion
Assignment Summary:
Throughout chapter 12 we will be using analytical tools to evaluate the performance of VF and Nike. You will also find some financial analysis tools at the end of most chapters. Use the tools introduced in chapters 12 (and at the end of each chapter) to help you analyze this Paper Packaging Company. We do not have a lot of details about the companys operations, but we do have an Income Statement and Balance Sheet for years 25-28. We also know that this company completed a series of mergers and acquisitions to better position themselves in their market. You will act as an investor who is considering purchasing $1,000,000 in new issuance stock (about 10%). Determine whether to make the investment and provide an analysis backing up your decision.
Your job is to unravel the information available, analyze the financial statements and draw some conclusions. You will produce (at least) three analytical assessments and a summary of conclusions.
Assignment Specifics:
Individual Observations
Review the Financial Statements associated with this project and make some initial observations about the company. Come up with at least 3 observations. (For example, by looking at the Income Statement you can see that the company is currently operating profitably. Your observations can be simple or complex, broad, or detailed.) Submit your analysis to the Assignments Folder in D2L Financial Statement Analysis.
Required:
Perform analysis on the Financial Statements provided for the company. Produce a summary of your conclusion about the company, including the recommendation you make i.e. to invest or not to invest.
Provide the analytical tools you used (at least three) that support your conclusion or recommendation. Be sure to include a description of your analysis in addition to the computational work.
You should submit:
A visually appealing summary that presents your conclusions and provides easy-to-understand analytics to support your conclusion.
Supplemental work to provide the supporting calculations/computations and descriptions of youranalysis.
Tips for Success:
Good summaries clearly state the recommendation you are making and the recommendation is then followed by your analysis. Each analysis includes clear computations and a brief description. Both clarity and creativity tend to be valued. When used appropriately, charts, graphs, and visual aids can improve your one-page summary.
Paper Packaging Company Balance Sheet As of September 30th for the Years Paper Packaging Company Income statement For the Years EndingStep by Step Solution
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