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The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the

The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report recommending whether or not to purchase the company stock.

The completed report should include:

  • An introduction to the company, including background information.
  • A financial statement review.
  • Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.
  • A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:

a. Liquidity b. Financial leverage c. Asset management d. Profitability e. Market value

  • Calculate Return on Equity (ROE) using the DuPont system.
  • Assess management performance by calculating Economic Value Added (EVA).
  • Evaluate the soundness of the company

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