This project is a compilation of the elements of financial analysis and reporting. Ensure that your work is organized and properly labeled. The written portion of the analysis will demonstrate writing across the curriculum, In a 750-900 words interpret the results by demonstrating a thorough financial analysis. Your paper must follow APA 6th edition format.

You are also required to create a PowerPoint presentation containing at least five slides. The PowerPoint presentation is worth 25 points out of the 100 points available for this assignment.

I have also included the assignment in the attachment for better viewing.

CASE11-4BOOKS UNLIMITED*?PART 1

Borders Group, Inc., presented this information in its 10-Ks:

CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions except per share data)
Jan. 31, 2009	Feb. 2, 2008	Feb. 3, 2007
Sales	$3,242.1	$3,555.1	$3,532.3
Other revenue	33.3	42.3	37.1
Total revenue	$3,275.4	$3,597.4	$3,569.4
Cost of merchandise sold (includes occupancy)	2,484.8	2,668.3	2,615.7
Gross margin	790.6	929.1	953.7
Selling, general, and administrative expenses	839.6	907.0	879.8
Pre-opening expense	2.8	5.0	8.1
Goodwill impairment	40.3	?	?
Asset impairments and other write-downs	57.1	13.0	60.6
Operating income (loss)	(149.2)	4.1	5.2
Interest expense, net	5.3	43.1	29.9
Loss before income tax	(154.5)	(39.0)	(24.7)
Income tax provision (benefit)	30.2	(19.1)	(2.8)
Loss from continuing operations	$(184.7)	$(19.9)	$(21.9)
Loss from operations of discontinued operations (net of income tax benefit of $0.9, $2.9 and $15.2)	(1.7)	(8.7)	(129.4)
Loss from disposal of discontinued operations (net of income tax benefit of $3.1, $7.6 and $0.0)	(0.3)	(128.8)	?
Loss from discontinued operations (net of tax)	(2.0)	(137.5)	(129.4)
Net loss	$(186.7)	$(157.4)	$(151.3)
Loss per common share data (Note 2)
Basic:
Loss from continuing operations per common share	$(3.07)	$(0.34)	$(0.35)
Loss from discontinued operations per common share	$(0.03)	$(2.34)	$(2.09)
Net loss per common share	$(3.10)	$(2.68)	$(2.44)
Weighted-average common shares outstanding	60.2	58.7	61.9
*?Borders Group, Inc., through our subsidiaries, Borders, Inc. (?Borders?), Walden Book Company, Inc. (?Waldenbooks?), and others (individually and collectively, ?we,? ?our? or the ?Company?), is an operator of book, music and movie superstores and mall-based bookstores.? 10-K
Source:Borders Group, Inc 2010 10-K

CONSOLIDATED BALANCE SHEETS
(Dollars in millions except share amounts)
Fiscal Year Ended
Jan. 31, 2009	Feb. 2, 2008
Assets
Current assets:
Cash and cash equivalents	$53.6	$58.5
Merchandise inventories	915.2	1,242.0
Accounts receivable and other current assets	102.4	103.5
Current assets of discontinued operations	?	102.0
Total current assets	1,071.2	1,506.0
Property and equipment, net	494.2	592.8
Other assets	39.4	64.9
Deferred income taxes	4.0	44.9
Goodwill	0.2	40.5
Noncurrent assets of discontinued operations	?	53.6
Total assets	$1,609.0	$2,302.7
Liabilities, Minority Interest and Stockholders' Equity
Current liabilities:
Short-term borrowings and current portion of long-term debt	$329.8	$548.6
Trade accounts payable	350.0	511.9
Accrued payroll and other liabilities	279.8	321.6
Taxes, including income taxes	30.1	18.3
Deferred income taxes	4.0	9.9
Current liabilities of discontinued operations	?	57.5
Total current liabilities	993.7	1,467.8
Long-term debt	6.4	5.4
Other long-term liabilities	345.8	325.0
Noncurrent liabilities of discontinued operations	?	25.4
Contingencies (Note 8)	?	?
Total liabilities	1,345.9	1,823.6
Minority interest	0.5	2.2
Total liabilities and minority interest	1,346.4	1,825.8
Stockholders' equity:
Common stock, 300,000,000 shares authorized; 59,903,232 and 58,794,224 shares issued and outstanding at January 31, 2009 and February 2, 2008, respectively	186.9	184.0
Accumulated other comprehensive income	11.9	42.4
Retained earnings	63.8	250.5
Total stockholders' equity	262.6	476.9
Total liabilities, minority interest and stockholders' equity	$1,609.0	$2,302.7

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
Fiscal Year Ended,
Jan. 31, 2009	Feb. 2, 2008	Feb. 3, 2007
Cash provided by (used for):
Net loss	$(186.7)	$(157.4)	$(151.3)
Net loss from discontinued operations	(2.0)	(137.5)	(129.4)
Net loss from continuing operations	(184.7)	(19.9)	(21.9)
Operations
Adjustments to reconcile net loss from continuing operations to operating cash flows:
Depreciation	107.1	103.7	111.2
Gain on sale of investments	?	?	(5.0)
Loss on disposal of assets	1.9	0.5	2.0
Stock-based compensation cost	3.0	5.1	4.1
Decrease in minority interest	?	0.4	0.6
Decrease (increase) in deferred income taxes	34.5	(3.7)	(24.7)
Decrease (increase) in other long-term assets	23.6	0.3	(1.3)
(Decrease) increase in other long-term liabilities	(14.9)	4.5	8.8
Goodwill impairment	40.3	?	?
Asset impairments and other write-downs	57.1	13.0	60.6
Cash provided by (used for) current assets and current liabilities:
Decrease (increase) in inventories	321.4	52.2	(23.3)
Decrease (increase) in accounts receivable	10.2	13.3	(7.5)
Decrease (increase) in prepaid expenses	9.8	(1.0)	10.4
Decrease in accounts payable	(160.2)	(59.2)	(55.7)
Increase (decrease) in taxes payable	13.7	(36.4)	(70.0)
(Decrease) increase in accrued payroll and other liabilities	(29.2)	32.2	50.8
Net cash provided by operating activities of continuing operations	233.6	105.0	39.1
Investing
Capital expenditures	(79.9)	(131.3)	(165.6)
Investment in Paperchase	(3.6)	(0.8)	?
Proceeds from the sale of discontinued operations	97.3	20.4	?
Proceeds from sale of investments	?	?	21.6
Net cash provided by (used for) investing activities of continuing operations	13.8	(111.7)	(144.0)
Financing
Proceeds from the excess tax benefit of options exercised	0.5	0.9	4.3
Net (repayment of) funding from credit facility	(261.7)	43.4	303.4
Funding from short-term note financing	42.5	?	?
Issuance of long-term debt	1.2	0.4	?
Repayment of long-term debt	(1.4)	?	?
Repayment of long-term capital lease obligations	(0.4)	(0.4)	(0.1)
Issuance of common stock	(0.4)	3.1	21.9
Repurchase of common stock	(0.2)	(0.6)	(148.7)
Payment of cash dividends	(6.5)	(19.4)	(25.2)
Net cash (used for) provided by financing activities of continuing operations	(226.4)	27.4	155.6
Effect of exchange rates on cash and cash equivalents of continuing operations	(0.9)	0.8	(0.6)
Net cash (used for) provided by operating activities of discontinued operations	(21.3)	(0.7)	16.2
Net cash used for investing activities of discontinued operations	(6.5)	(17.8)	(41.9)
Net cash (used for) provided by financing activities of discontinued operations	?	(41.9)	13.9
Effect of exchange rates on cash and cash equivalents of discontinued operations	2.8	(0.2)	0.5
Net cash used for discontinued operations	(25.0)	(60.6)	(11.3)
Net increase (decrease) in cash and cash equivalents	(4.9)	(39.1)	38.8
Cash and cash equivalents at beginning of year	58.5	97.6	58.8
Cash and cash equivalents at end of year	$53.6	$58.5	$97.6
Supplemental cash flow disclosures:
Interest paid	$36.3	$43.8	$32.8
Income taxes (received) paid	$(34.6)	$12.4	$63.5

Required

• a.Compute the following liquidity ratios for 2009 and 2008:
  • 1.Days' sales in inventory
  • 2.Inventory turnover (use ending inventory)
  • 3.Working capital
  • 4.Current ratio
  • 5.Cash ratio
  • 6.Sales to working capital (use ending working capital)
  • 7.Operating cash flow/current maturities of long-term debt and current notes payable
• b.Compute the following long-term debt-paying ability for 2009 and 2008:
  • 1.Debt ratio
  • 2.Operating cash flow/total debt
• c.Compute the following profitability ratios for 2009 and 2008:
  • 1.Net profit margin
  • 2.Return on assets (use end of year total assets)
  • 3.Return on total equity (use end of year total equity)
  • 4.Gross profit margin
• d.Compute or obtain the following investor analysis:
  • 1.Earnings per common share
  • 2.Operating cash flow/cash dividends
• e.Comment on the results in (a), (b), (c) and (d).
• f.Comment on the trend in net income (loss).
• g.Comment on significant trends (items) in the Consolidated Statement of Cash Flows.
• h.Using these ratios for 2009 and 2008, comment using the Beaver Study on possible financial failure:
  • 1.Cash flow/total debt
  • 2.Net income/total assets (return on assets)
  • 3.Total debt/total assets (debt ratio)

This project is a compilation of the elements of financial analysis and reporting. Ensure that your work is organized and properly labeled. The written portion of the analysis will demonstrate writing across the curriculum, In a 750-900 words interpret the results by demonstrating a thorough financial analysis. Your paper must follow APA 6th edition format. You are also required to create a PowerPoint presentation containing at least five slides. The PowerPoint presentation is worth 25 points out of the 100 points available for this assignment. CASE 11-4 BOOKS UNLIMITED*PART 1 Borders Group, Inc., presented this information in its 10Ks: CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions except per share data) Jan. 31, 2009 Feb. 2, 2008 Feb. 3, 2007 Sales $3,242. 1 $3,555. 1 $3,532. 3 Other revenue 33.3 42.3 37.1 $3,275. 4 $3,597. 4 $3,569. 4 2,484.8 2,668.3 2,615.7 Total revenue Cost of merchandise sold (includes occupancy) Gross margin Selling, general, and administrative expenses 790. 6 929. 1 839. 6 907. 0 2. Pre-opening expense 8 Goodwill impairment 57.1 Operating income (loss) Interest expense, net 879. 8 5. 3 Asset impairments and other write-downs 953. 7 0 40. 8. 1 13.0 (149 60.6 4. 5. .2) 1 2 5.3 43.1 29.9 Loss before income tax Income tax provision (benefit) Loss from continuing operations Loss from operations of discontinued operations (net of income tax benefit of $0.9, $2.9 and $15.2) Loss from disposal of discontinued operations (net of income tax benefit of $3.1, $7.6 and $0.0) Loss from discontinued operations (net of tax) Net loss Loss per common share data (Note 2) Basic: Loss from continuing operations per common share Loss from discontinued operations per common share Net loss per common share Weighted-average common shares outstanding CONSOLIDATED BALANCE SHEETS (Dollars in millions except share amounts) Assets Current assets: Cash and cash equivalents (154 (3 (24 .5) 9.0) .7) 30.2 (19.1) (2.8) $(184.7 ) $ (19. 9) $ (21.9 ) ( (129 (1. 7) 8.7) (0. .4) 3) (12 8.8) (2.0) (137.5) (129.4) $(186.7 ) $(157. 4) $(151.3 ) $ (3.07 ) $ (0.3 4) $ (0.35 ) $ (0.03 ) $ (2.3 4) $ (2.09 ) $ (3.10 ) $ (2.6 8) $ (2.44 ) 60.2 58.7 61.9 Merchandise inventories Accounts receivable and other current assets Current assets of discontinued operations Total current assets Property and equipment, net Other assets Deferred income taxes Goodwill Noncurrent assets of discontinued operations Total assets Liabilities, Minority Interest and Stockholders' Equity Current liabilities: Short-term borrowings and current portion of long-term debt Trade accounts payable Accrued payroll and other liabilities Taxes, including income taxes Deferred income taxes Current liabilities of discontinued operations Total current liabilities Long-term debt Other long-term liabilities Noncurrent liabilities of discontinued operations Contingencies (Note 8) Total liabilities Minority interest Total liabilities and minority interest Stockholders' equity: Common stock, 300,000,000 shares authorized; 59,903,232 and 58,794,224 shares issue outstanding at January 31, 2009 and February 2, 2008, respectively Accumulated other comprehensive income Retained earnings Total stockholders' equity Total liabilities, minority interest and stockholders' equity CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in millions) Fisca Jan. 3 Cash provided by (used for): Net loss Net loss from discontinued operations Net loss from continuing operations Operations Adjustments to reconcile net loss from continuing operations to operating cash flows: Depreciation Gain on sale of investments Loss on disposal of assets Stock-based compensation cost Decrease in minority interest Decrease (increase) in deferred income taxes Decrease (increase) in other long-term assets (Decrease) increase in other long-term liabilities Goodwill impairment Asset impairments and other write-downs Cash provided by (used for) current assets and current liabilities: Decrease (increase) in inventories Decrease (increase) in accounts receivable Decrease (increase) in prepaid expenses Decrease in accounts payable Increase (decrease) in taxes payable (Decrease) increase in accrued payroll and other liabilities Net cash provided by operating activities of continuing operations Investing Capital expenditures Investment in Paperchase Proceeds from the sale of discontinued operations Proceeds from sale of investments Net cash provided by (used for) investing activities of continuing operations Financing $(186 (2 (184 107 1 3 34 23 (1 40 57 321 10 9 (16 13 (29.2 233 (7 ( 97 13.8 Proceeds from the excess tax benefit of options exercised Net (repayment of) funding from credit facility Funding from short-term note financing Issuance of long-term debt Repayment of long-term debt Repayment of long-term capital lease obligations Issuance of common stock Repurchase of common stock Payment of cash dividends Net cash (used for) provided by financing activities of continuing operations Effect of exchange rates on cash and cash equivalents of continuing operations Net cash (used for) provided by operating activities of discontinued operations Net cash used for investing activities of discontinued operations Net cash (used for) provided by financing activities of discontinued operations Effect of exchange rates on cash and cash equivalents of discontinued operations Net cash used for discontinued operations Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental cash flow disclosures: Interest paid Income taxes (received) paid J J J J J J J J J J J J J J J J J J J J Required a. Compute the following liquidity ratios for 2009 and 2008: 1. Days' sales in inventory 2. Inventory turnover (use ending inventory) 3. Working capital 4. Current ratio 5. Cash ratio 6. Sales to working capital (use ending working capital) 7. Operating cash flow/current maturities of long-term debt and current notes payable b. Compute the following long-term debt-paying ability for 2009 and 2008: 1. Debt ratio 2. Operating cash flow/total debt c. Compute the following profitability ratios for 2009 and 2008: 1. Net profit margin 2. Return on assets (use end of year total assets) 3. Return on total equity (use end of year total equity) 4. Gross profit margin d. Compute or obtain the following investor analysis: 1. Earnings per common share 2. Operating cash flow/cash dividends e. Comment on the results in (a), (b), (c) and (d). 0 (26 42 1 (1 (0 (0 (0 (6.5) (22 (0.9) (2 ( 2.8 (25.0 (4.9) 58.5 $ 5 $ 3 $ (34 J J J J J f. Comment on the trend in net income (loss). g. Comment on significant trends (items) in the Consolidated Statement of Cash Flows. h. Using these ratios for 2009 and 2008, comment using the Beaver Study on possible financial failure: 1. Cash flow/total debt 2. Net income/total assets (return on assets) 3. Total debt/total assets (debt ratio)