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Preparing a Term Project (3000 words) Required 1) Use companys data given below and understand the industry characteristics to which the company belongs 2) Assess
Preparing a Term Project (3000 words)
Required
1) Use companys data given below and understand the industry characteristics to which the company belongs
2) Assess the quality of financial statements (given below) and critically analyze risk and return
3) Project the financial statement amounts into the future using spreadsheets
4) Value the firm and critically evaluate how sensitive the estimated value to different assumptions about the inputs factors such as discount factor (assume it) and long-run growth rate (assume it)
The report should following structure
Background to Study
Data Collection and Research Methodology
Analysis & discussion
Concluding Remarks
References
Company's Data
| Annual Statements | ||||||
| Parameters | Currency | 2011 | 2012 | 2013 | 2014 | 2015 |
| Income Statements | ||||||
| Revenue | USD | 375,713.0 | 375,765.0 | 379,136.0 | 353,568.0 | 222,894.0 |
| Total Revenue | USD | 375,713.0 | 375,765.0 | 379,136.0 | 353,568.0 | 222,894.0 |
| Cost of Revenue, Total | USD | 317,576.0 | 334,858.0 | 332,925.0 | 312,240.0 | 202,866.0 |
| Gross Profit | USD | 58,137.0 | 40,907.0 | 46,211.0 | 41,328.0 | 20,028.0 |
| Selling/General/Admin. Expenses, Total | USD | 13,958.0 | 13,357.0 | 13,070.0 | 12,696.0 | 11,553.0 |
| Research & Development | USD | 1,520.0 | 1,475.0 | 3,441.0 | 3,632.0 | 2,353.0 |
| Depreciation/Amortization | USD | 11,357.0 | 12,687.0 | 13,510.0 | 15,163.0 | 15,219.0 |
| Unusual Expense (Income) | USD | 2,058.0 | 6,275.0 | 1,961.0 | 8,965.0 | 1,243.0 |
| Total Operating Expense | USD | 346,469.0 | 368,652.0 | 364,907.0 | 352,696.0 | 233,234.0 |
| Operating Income | USD | 29,244.0 | 7,113.0 | 14,229.0 | 872.0 | -10,340.0 |
| Gain (Loss) on Sale of Assets | USD | 4,132.0 | 6,697.0 | 13,115.0 | 895.0 | |
| Other, Net | USD | -785.0 | -794.0 | -704.0 | -622.0 | -767.0 |
| Net Income Before Taxes | USD | 38,228.0 | 18,131.0 | 30,221.0 | 4,950.0 | -9,571.0 |
| Provision for Income Taxes | USD | 12,619.0 | 6,880.0 | 6,463.0 | 947.0 | -3,171.0 |
| Net Income After Taxes | USD | 25,609.0 | 11,251.0 | 23,758.0 | 4,003.0 | -6,400.0 |
| Minority Interest | USD | -397.0 | -234.0 | -307.0 | -223.0 | -82.0 |
| Net Income Before Extra. Items | USD | 25,212.0 | 11,017.0 | 23,451.0 | 3,780.0 | -6,482.0 |
| Net Income | USD | 25,212.0 | 11,017.0 | 23,451.0 | 3,780.0 | -6,482.0 |
| Total Adjustments to Net Income | USD | -2.0 | -2.0 | -2.0 | -2.0 | -2.0 |
| Income Available to Com Excl ExtraOrd | USD | 25,210.0 | 11,015.0 | 23,449.0 | 3,778.0 | -6,484.0 |
| Income Available to Com Incl ExtraOrd | USD | 25,210.0 | 11,015.0 | 23,449.0 | 3,778.0 | -6,484.0 |
| Diluted Net Income | USD | 25,210.0 | 11,015.0 | 23,449.0 | 3,778.0 | -6,484.0 |
| Diluted Weighted Average Shares | USD | 19,136.2 | 19,157.9 | 19,046.2 | 18,497.3 | 18,323.7 |
| Diluted EPS Excluding ExtraOrd Items | USD | 1.3 | 0.6 | 1.2 | 0.2 | -0.4 |
| Diluted Normalized EPS | USD | 1.2 | 0.6 | 0.8 | 0.7 | 0.2 |
| DPS - Common Stock Primary Issue | USD | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 |
| Balance Sheet | ||||||
| Cash | USD | 5,885.0 | 6,907.0 | 5,112.0 | 4,653.0 | |
| Cash & Equivalents | USD | 14,177.0 | 4,507.0 | 3,367.0 | 6,259.0 | 4,987.0 |
| Short Term Investments | USD | 288.0 | 9,562.0 | 12,713.0 | 18,721.0 | 16,968.0 |
| Cash and Short Term Investments | USD | 14,465.0 | 19,954.0 | 22,987.0 | 30,092.0 | 26,608.0 |
| Accounts Receivable - Trade, Net | USD | 43,589.0 | 31,534.0 | 32,538.0 | 22,383.0 | 15,671.0 |
| Total Receivables, Net | USD | 44,068.0 | 38,314.0 | 40,559.0 | 32,208.0 | 23,194.0 |
| Total Inventory | USD | 26,073.0 | 28,203.0 | 29,231.0 | 18,373.0 | 14,142.0 |
| Prepaid Expenses | USD | 1,315.0 | 1,091.0 | 1,388.0 | 1,424.0 | 1,838.0 |
| Other Current Assets, Total | USD | 12,277.0 | 23,822.0 | 2,675.0 | 5,165.0 | 4,820.0 |
| Total Current Assets | USD | 98,198.0 | 111,384.0 | 96,840.0 | 87,262.0 | 70,602.0 |
| Property/Plant/Equipment, Total - Gross | USD | 248,904.0 | 269,456.0 | 281,701.0 | 292,703.0 | |
| Accumulated Depreciation, Total | USD | -123,573.0 | -135,766.0 | -151,009.0 | -162,945.0 | |
| Property/Plant/Equipment, Total - Net | USD | 123,431.0 | 125,331.0 | 133,690.0 | 130,692.0 | 129,758.0 |
| Goodwill, Net | USD | 12,429.0 | 12,190.0 | 12,181.0 | 11,868.0 | 11,627.0 |
| Intangibles, Net | USD | 21,653.0 | 24,632.0 | 22,039.0 | 20,907.0 | 18,660.0 |
| Long Term Investments | USD | 24,229.0 | 14,316.0 | 27,400.0 | 20,384.0 | 18,836.0 |
| Note Receivable - Long Term | USD | 6,562.0 | 6,603.0 | 6,748.0 | 5,446.0 | 2,745.0 |
| Other Long Term Assets, Total | USD | 6,405.0 | 6,010.0 | 6,792.0 | 7,746.0 | 9,604.0 |
| Total Assets | USD | 292,907.0 | 300,466.0 | 305,690.0 | 284,305.0 | 261,832.0 |
| Accounts Payable | USD | 52,000.0 | 31,025.0 | 32,502.0 | 25,510.0 | 18,968.0 |
| Accrued Expenses | USD | 6,016.0 | 6,875.0 | 8,960.0 | 7,102.0 | 6,261.0 |
| Current Port. of LT Debt/Capital Leases | USD | 9,039.0 | 9,401.0 | 7,381.0 | 6,877.0 | 6,944.0 |
| Other Current liabilities, Total | USD | 16,939.0 | 29,874.0 | 23,969.0 | 24,126.0 | 22,551.0 |
| Total Current Liabilities | USD | 83,994.0 | 77,175.0 | 72,812.0 | 63,615.0 | 54,724.0 |
| Long Term Debt | USD | 35,169.0 | 38,412.0 | 40,317.0 | 45,240.0 | 45,567.0 |
| Capital Lease Obligations | USD | 355.0 | 494.0 | 737.0 | 657.0 | |
| Total Long Term Debt | USD | 35,169.0 | 38,767.0 | 40,811.0 | 45,977.0 | 46,224.0 |
| Total Debt | USD | 44,208.0 | 48,168.0 | 48,192.0 | 52,854.0 | 53,168.0 |
| Deferred Income Tax | USD | 15,220.0 | 15,243.0 | 17,439.0 | 13,893.0 | 9,599.0 |
| Minority Interest | USD | 1,017.0 | 1,206.0 | 1,105.0 | 1,201.0 | 1,171.0 |
| Other Liabilities, Total | USD | 45,939.0 | 49,529.0 | 44,221.0 | 48,178.0 | 52,898.0 |
| Total Liabilities | USD | 181,339.0 | 181,920.0 | 176,388.0 | 172,864.0 | 164,616.0 |
| Redeemable Preferred Stock, Total | USD | 21.0 | ||||
| Common Stock, Total | USD | 5,224.0 | 5,261.0 | 5,129.0 | 5,023.0 | 5,028.0 |
| Additional Paid-In Capital | USD | 11,534.0 | 11,582.0 | 10,061.0 | 10,260.0 | 10,234.0 |
| Retained Earnings (Accumulated Deficit) | USD | 111,357.0 | 115,854.0 | 132,253.0 | 121,183.0 | 109,987.0 |
| Treasury Stock - Common | USD | -21,323.0 | -21,054.0 | -20,971.0 | -20,719.0 | -19,964.0 |
| Other Equity, Total | USD | 4,776.0 | 6,903.0 | 2,830.0 | -4,306.0 | -8,090.0 |
| Total Equity | USD | 111,568.0 | 118,546.0 | 129,302.0 | 111,441.0 | 97,216.0 |
| Total Liabilities & Shareholders' Equity | USD | 292,907.0 | 300,466.0 | 305,690.0 | 284,305.0 | 261,832.0 |
| Total Common Shares Outstanding | USD | 18,975.9 | 19,135.8 | 18,638.7 | 18,234.9 | 18,381.0 |
| Total Preferred Shares Outstanding | USD | 7.2 | 7.2 | 12.7 | 12.7 | 12.7 |
| Cash Flow | ||||||
| Net Income/Starting Line | USD | 38,228.0 | 18,131.0 | 30,221.0 | 4,950.0 | -9,571.0 |
| Depreciation/Depletion | USD | 1,024.0 | 745.0 | 2,710.0 | 15,163.0 | 15,219.0 |
| Non-Cash Items | USD | 6,400.0 | 13,659.0 | 359.0 | 9,134.0 | 13,882.0 |
| Changes in Working Capital | USD | -23,434.0 | -12,056.0 | -12,190.0 | 3,507.0 | -397.0 |
| Cash from Operating Activities | USD | 22,218.0 | 20,479.0 | 21,100.0 | 32,754.0 | 19,133.0 |
| Capital Expenditures | USD | -17,978.0 | -23,222.0 | -24,520.0 | -22,546.0 | -18,648.0 |
| Other Investing Cash Flow Items, Total | USD | -8,775.0 | 10,147.0 | 16,665.0 | 2,972.0 | 1,348.0 |
| Cash from Investing Activities | USD | -26,753.0 | -13,075.0 | -7,855.0 | -19,574.0 | -17,300.0 |
| Financing Cash Flow Items | USD | -245.0 | -82.0 | -437.0 | -246.0 | -96.0 |
| Total Cash Dividends Paid | USD | -4,072.0 | -5,294.0 | -5,441.0 | -5,850.0 | -6,659.0 |
| Issuance (Retirement) of Stock, Net | USD | 74.0 | 122.0 | -5,358.0 | -4,589.0 | |
| Issuance (Retirement) of Debt, Net | USD | 4,720.0 | 3,244.0 | 836.0 | 5,419.0 | 2,220.0 |
| Cash from Financing Activities | USD | 477.0 | -2,010.0 | -10,400.0 | -5,266.0 | -4,535.0 |
| Foreign Exchange Effects | USD | -493.0 | 64.0 | 40.0 | -671.0 | -672.0 |
| Net Change in Cash | USD | -4,551.0 | 5,458.0 | 2,885.0 | 7,243.0 | -3,374.0 |
| Cash Interest Paid | USD | 1,125.0 | 1,166.0 | 1,084.0 | 937.0 | 1,080.0 |
| Cash Taxes Paid | USD | 8,063.0 | 6,482.0 | 6,307.0 | 4,787.0 | 2,256.0 |
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
