Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with project on NIKE In this milestone, submit a draft of a portion of the analysis step, Part II, Section D: Vertical Analysis

Need help with project on NIKE

In this milestone, submit a draft of a portion of the analysis step, Part II, Section D: Vertical Analysis and Section E: Horizontal Analysis.

You will review and compute three years of vertical and horizontal analyses of the approved company you selected in Milestone One. Note that this is not a ratio analysis but an internal assessment of the income statement and balance sheet.

In the vertical analysis, you will measure performance against one variable: revenue in the income statement and assets in the balance sheet from the most recent year. The horizontal analysis measures trends over the years and is a strong gauge of growth and consistence.

For additional details, please refer to the Milestone Two Guidelines and Rubric document and the Final Project Document in the Assignment Guidelines and Rubrics section of the course.

image text in transcribed FIN 325 Final Project Milestone Two Guidelines and Rubric Overview: The final project for this course is the creation of a financial statement analysis. A business's financial statements offer important insights into its performance and financial health that help guide internal managers' and external investors' resource allocations. For a financial analyst, being able to accurately read and interpret these statements is a critical tool in making sound recommendations to clients or company executives. Analysts also need to understand how the limitations of these statements and the legal and ethical obligations that underpin them impact business decisions. Prompt: In this milestone, you will submit a draft of a portion of the analysis step (Part II), Section D: Vertical Analysis and Section E: Horizontal Analysis. You will review and compute three years of vertical and horizontal analyses of the approved company you selected in Milestone One. Note that this is not a ratio analysis but an internal assessment of the income statement and balance sheet. In the vertical analysis, you will measure performance against one variable: revenue in the income statement and assets in the balance sheet from the most recent year. The horizontal analysis measures trends over the years and is a strong gauge of growth and consistence. Specifically, the following critical elements must be addressed: II. Analysis. Use this section to present your findings based on quantitative and qualitative analysis of the financial statements. Include a copy of the financial statements and any ratios or analysis in an appendix as support for your discussion. In particular, this section should cover: d) Vertical Analysis. Perform a vertical analysis of the income statement and the balance sheet from the most recent year in order to answer the following questions. Be sure to include supporting calculations and a vertical analysis spreadsheet in an appendix. 1. Do any items in your vertical analysis stand out? Why or why not? Be sure to provide specific examples and explain what elements you considered in arriving at your answer. 2. What does your vertical analysis suggest for managing the company's financial health? Be sure to justify your response. For example, are there things the company might want to look at more closely? Why or why not? 3. What does your vertical analysis suggest with respect to how potential investors would view the company? Justify your response. For example, are there items that might make potential investors less likely to buy the company's stock? Are there items that might make potential creditors wary about lending to the company? Why or why not? e) Horizontal Analysis. Perform a horizontal analysis of the same key performance measures covered by your vertical analysis to examine trends for the company over a three-year time period. Use your analysis to answer the following questions and include supporting calculations and horizontal analysis spreadsheet in an appendix. 1. Do any items in your horizontal analysis stand out? Why or why not? Be sure to explain what elements you considered in arriving at your answer. 2. What does your horizontal analysis suggest for managing the company's financial health? Be sure to justify your response. For example, are there things the company might want to look at more closely? Why or why not? 3. What does your horizontal analysis suggest with respect to how potential investors would view the company? Justify your response. For example, are there any items that might make potential investors less likely to buy the company's stock? Are there items that might make potential creditors wary about lending to the company? Why or why not? Guidelines for Submission: Your paper must be submitted as a 2-3 page Microsoft Word document with double spacing, 12-point Times New Roman font, oneinch margins, and at least two sources cited in APA format. Include all relevant and supporting appendices, including financial statements and analyses. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Be sure to incorporate instructor feedback provided from this milestone into the final draft to be submitted in Module Seven. Rubric Critical Elements Analysis: Vertical Analysis: Stand Out Analysis: Vertical Analysis: Managing Proficient (100%) Analyzes items that stand out from a vertical analysis of the company's most recent financial statements, justifying response, including specific examples and elements considered in arriving at answer Analyzes what vertical analysis suggests for managing the company's financial health, justifying response Needs Improvement (75%) Analyzes items that stand out from vertical analysis but does not justify response, including specific examples and elements considered in arriving at answer Analyzes what vertical analysis suggests for managing the company's financial health but does not justify response or response contains inaccuracies or omits critical details Analysis: Assesses what vertical analysis suggests Assesses what vertical analysis suggests Vertical with respect to potential investors' view of with respect to potential investors' view of Analysis: company, justifying response company but does not justify response or Potential response contains inaccuracies or omits key Investors details Analysis: Analyzes items that stand out from threeAnalyzes items that stand out from Horizontal year horizontal analysis of company's horizontal analysis but does not justify Analysis: Stand financial statements, justifying response, response, including elements considered in Out including elements considered in arriving at arriving at answer, or response contains answer inaccuracies or omits critical details Analysis: Analyzes what horizontal analysis suggests Analyzes what horizontal analysis suggests Horizontal for managing the company's financial for managing the company's financial Analysis: health, justifying response health but does not justify response or Managing response contains inaccuracies or omits critical details Not Evident (0%) Does not analyze items that stand out from vertical analysis of company's most recent financial statements Value 15 Does not analyze what vertical analysis suggests for managing the company's financial health 15 Does not assess what vertical analysis suggests with respect to potential investors' view of company 15 Does not analyze items that stand out from three-year horizontal analysis of company's financial statements 15 Does not analyze what horizontal analysis suggests for managing the company's financial health 15 Analysis: Horizontal Analysis: Potential Investors Articulation of Response Assesses what horizontal analysis suggests with respect to potential investors' view of company, justifying response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Assesses what horizontal analysis suggests with respect to potential investors' view of company but does not justify response or response contains inaccuracies or omits key details Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not assess what horizontal analysis suggests with respect to potential investors' view of company 15 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Earned Total 10 100%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Financial Management

Authors: Alan C Shapiro, Paul Hanouna

11th Edition

1119559901, 9781119559900

More Books

Students also viewed these Finance questions

Question

A greater tendency to create winwin situations.

Answered: 1 week ago

Question

Improving creative problem-solving ability.

Answered: 1 week ago