Please read the following information carefully, this information will help you

complete this financial analysis project.

$1.$Accounting Component

a$)$ Obtain the most recent ten years of annual total sales $($total revenue$)$

data from the firm$$s financial history. In addition, use just the last three

years for the firm$$s financial statement data: I complete this work for you.

You can download the financial statements on Canvas Or you can build the

financial statements by yourself.

i$)$ Income Statement

ii$)$ Balance Sheet

iii$)$ The Statement of Cash Flow

b$)$ Derive common size statements for the income statement and the

balance sheet NOT the cash flow and, just history and it will assist you with

the SWOT showing financial data trends.

i$)$ Look at variations in the same data as well as variations in the trends

$($In your analysis below minimize your comments$)$

$2.$General Component $($No more than two paragraphs$)$

a$)$ No more than one paragraph describing the history and industry of

the company.

$3.$ Economic Component: $($No more than two paragraphs$)$

$1)$ How does the above relate to the industry that the company is in$,$ i$.$e$.,$

need to perform competitive economic analysis about the company:

a$)$ Macroeconomic analysis$----$is the company$$s sales cyclical or countercyclical for example?

b$)$ Industry analysis$---$market share. Are the company$$s sales growing,

declining, or staying the same? How is the company performing relative to

its competition?

$2)$ SWOT: No more than $2$ to $3$ lines for each component

a$)$ STRENGTHS and WEAKNESSES should focus EXCLUSIVELY on

the INTERNAL CHARACTERISTICS OF THE FIRM$$S FINANCES.

b$)$ The OPPORTUNITIES and THREATS should focus EXCLUSIVELY

on the EXTERNAL CHARACTERISTICS OF THE FIRM$$S FINANCES.

$4.$ Finance Component $($This is your key analysis$)$

a$)$ The PERCENT OF SALES MODEL and the above should provide

you the assumptions for deriving proformas for each of the two financial

statements $($balance sheet & income statement$),$ and will allow you to do

your critical financial analysis of the firm.

i$)$ The pro forma, must be forecasted out three years.

ii$)$ Make sure you focus on your assumptions and EXPLICITLY show

them since they will drive your forecasted data, which will allow you to

perform the critical analysis of where the company is going, based on your

forecasted data INCLUDING THE FORECASTED SHARE PRICES.

iii$)$ This should be the focus of your written analysis; stated differently,

the focus needs to be on the future of your company and where it is going,

and why.

b$)$ The emphasis should not be on the history of the company, other

than what I have asked you to include, which is stated above.

c$)$ Finally, in your analysis you need to justify your conclusions. For

example, is the company in a strong financial position based on its

EXPECTED SHARE PRICES and MARKET CAPITALIZATION? Why or

why not? What direction does the company need to go in either case?

These are some of the questions that need to be answered.

$6)$ Valuation Summary$---$Where the company is financially TODAY

and is supported by your SWOT and the direction it is going financially

based on your proformas which are generated through your assumptions.

This should be where your crucial writing is done.

$7)$ Conclusions

Final Submission Format

a$)$ Title Page $($Single Page$)$ Executive Summary $($Single Page$)$

b$)$ Introduction

i$.$ No more than one paragraph history of the firm

ii$.$ Problem Statement$-----$Is the firm financially viable?

c$)$ Review of Literature

i$.$ Newspapers

ii$.$ Periodicals

iii. Etc.

d$)$ Structural Framework$---$Estimation of sales $($revenue$)$ forecast using

your data

i$.$ Regression Analysis

ii$.$ Alternative Estimation Techniques

iii. Derivation of Proformas$---$Balance Sheet, Income Statement, Cash

Flow through the PERCENT OF SALES MODEL

e$)$ Financial analysis of your findings

i$.$ Using your historical data from your financial statements and

common$-$size financial statements

ii$.$ Using your forecast data from your proforma financial statements and

other information such as economic value added, free cash flow, intrinsic

value, and return on invested capital to name a few examples that can help

in your analysis

f$)$ Valuation summary and conclusions

g$)$ Appendix

i$.$ Tables

ii$.$ Graphs

iii. Other

h$)$ Additional Requirements

i$.$ Use the APA format$---$Full Documentation, which includes explicitly

identifying others$$ works.

ii$.$ NO CUTTING AND PASTING

iii. Title page $($Single Page$)$

iv$.$ Executive Summary $($Single Page$)$

v$.$ Maximum of five $(5)$ written pages, does not include the title page,

executive summary, or appendices$---$tables, etc. go into an appendix

vi$.$ Bibliography

vii. Page numbers