Part A and Part B are required Assignment 1:Please separate responses

JWI 530: Financial Management I Assignment 1 © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed , in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 530 – Assignment 1 (1194 ) Page 1 of 6 Assignment 1: Annual Report Analysis Part A Due Sunday , M idnight of Week 4 (10 % of Final Grade) Part B Due Sunday , M idnight of Week 5 ( 20 % of Final Grade) Overview A critical financial accounting skill is the ability to read, analyze, and make actionable decisions from any financial statement. Business leaders gain valuable information from the annual reports of direct competitors, companies that operate in similar fields, and companies in which they are considering an investment or partnership. Instructions You are the CFO of an up -and -coming film production company working to become a provider of premium travel -related vide o content . This content would allow viewers to enjoy a highly immersive interactive experience . As part of your business strategy, you are researching major players in the entertainment space for possible partnership opportunities. Your CEO is a big believer in learning from players of all sizes , and is re questing your analysis and guidance. While there are dozens of potential companies worth exploring, you want to begin by taking a close look at two major players: Disney (NYSE: DIS) and Netflix (NASDAQ: NFLX). You have decided to organize your work into TWO components : Part A: Financial Analysis Snapshot of key data from the annual reports Part B: Executive Memo and brief Video Presentation of your analysis Part A: Financial Analysis Snapshot Submission Requirements (Due: Sunday at midnight of Week 4)  All work is to be completed and submitted in the attached Excel template .  Go to the Investor Relations section of each company’s website and d ownload their annual reports. You may need to download more than one report to get all req uired historical data.  Use the Annual Repor ts/10K to populate the Excel template. o Some entries simply require finding the respective line item amounts, while others will require calculation s (these are indicated in in template) . o In addition, note that the column on the far right asks you to use Variance Trend Analysis to describe the company’s financial trend for this line item or ratio as :  Positive – financial conditions are improving  Negative – financial conditions are getting worse  Neutral – there is little (or no) change or the financial implications are unclear JWI 530: Financial Management I Assignment 1 © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed , in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 530 – Assignment 1 (1194 ) Page 2 of 6 Part B: Executive Memo and Video Presentation (Due: Sunday , M idnight of Week 5) Present a synopsis of your analysis in an executive memo you would feel comforta ble turning in to your CEO or to Jack . You may organize the memo as you see fit, but it must follow the principles of good business communication. To support your executive memo, record a brief video presentation highlighting the key points of your findi ngs. The requirements for each component are outlined below . Executive M emo: 1. Profitability/ Net Income Margins  What are the after -tax net income margins (i.e. , net profit margin s) for both companies?  How do they compare?  Who achieves the higher net income margin? W hy? Tip: Analyze the major cost structure line item s in the income statement (COGS, SG&A, interest, other, and taxes) as percentage s of net sale s, so you can identify reasons for better net income margins. Identify and comment on the diffe rences. You may not know why a particular cost item like COGS is higher or lower, and that’s okay. Y our CEO only wants to know which cost -structure items are higher or lower for each company. 2. Accounts Receivable Management  Who takes longer to collect AR (Days Sales Outstanding ratio) ?  What are their respective 3 -year trends for DSO ?  What options could the company consider to improve DSO? 3. Cash Is King  How much net cash from operations did each company generate last year?  Which company has done a better job generating cash from operations?  In laym an's terms, how is each company spending their cash with respect to reinvestments in the business, changes in debt, and returning money to shareholders? 4. Liquidity  How do the companies compare in terms of the current ratio, and what are their respective 3 - year trends?  Do their current ratio s indicate that either of these co mpanies could go bankrupt soon? Explain. JWI 530: Financial Management I Assignment 1 © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed , in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 530 – Assignment 1 (1194 ) Page 3 of 6 Video Presentation and Slide Deck : 1. Create a PowerPoint deck in support of your financial presentation  Highlight your key findings from your E xecutive Memo and Financial Analysis Snapshot . Focus on the most important insights that would be helpful for the leadership team .  Your PowerPoint should be compleme ntary to your Executive Memo and your Financial Analysis Snapshot . i. Assume your CEO will have access to the documents , so just hit the high points . ii. Keep your slides legible. Avoid small fonts , too muc h text , or distracting graphics . iii. Keep it brief , using a m aximum of 5 slides . 2. Record your financial presentation using ZOOM  Record both the P owerPoint deck and your webcam feed simultaneously .  Practice your presentation. You may record as many times as you wish prior to submitting .  Maintain eye contact, speak conversa tionally and professionally , use an engaging tone, and dress appropriately .  Your video m ust be no longer than 5 minutes . Submission Requirements  Your executive memo should be no more than 2 pages, single -spaced , using 10 - or 12 -point font . You may also include an appendix with additional references, graphs, charts, and tables for additional support if needed.  Your video recording should not exceed 5 minutes in length .  Your PowerPoint deck must not exceed 5 slides (not including cover pag e or references, if desired) .  Video instructions and samples can be viewed at: https://www.kaltura.com/tiny/qpz1z . JWI 530: Financial Management I Assignment 1 © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed , in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 530 – Assignment 1 (1194 ) Page 4 of 6 RUBRIC : Part A CRITERIA Unsatisfactory Low Pass Pass High Pass Honors 1. Accurately complete the Data and Analysis Template . Weight: 100% Did not submit , or had greater than 30% errors. Submission had 30% or fewer errors. Submission had 20% or fewer errors. Submission had 10% or fewer errors Submission had virtually no errors. JWI 530: Financial Management I Assignment 1 © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed , in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 530 – Assignment 1 (1194 ) Page 5 of 6 RUBRIC: Part B CRITERIA Unsatisfactory Low Pass Pass High Pass Honors 1. Discuss the profit structure of both orga nizations’ net income margins . Weight: 20% Did not submit , or incorrectly identified and assessed the profit structure s of both organizations. Satisfactorily identified and assessed the profit structure of one organization . Satisfactorily identified and assessed the profit structure s of both organizati ons ; contained minor omissions. Excellent analysis of the profit structure s of both organizations; no critical omissions. Met HP criteria , plus included additional insights and analyses demonstrating additional research and knowledge. 2. Assess each company’s AR management practices . Weight: 20% Did not submit , or inc orrectly assessed both compan ies’ inventory management methods and mis identified their valuation method s. Satisfactorily assessed one company’s inventory management methods and identified their valuation method s. Satisfactorily assessed both compan ies’ inventory management methods and ide ntified their valuation method s; contained minor omissions. Excellent assessment of both compa nies’ inventory management methods and identified their valuation method s; no critical omissions. Met HP criteria , plus in cluded additional insights and analyses demonstrating additional research and knowledge. 3. Identify and assess each company’s cash flow situation and decisions. Weight: 20% Did not submit , or incorrectly identified and assessed both compan ies’ cash flow situation and decisions. Satisfactorily identified and assessed one company’s cash flow situation and decisions. Satisfactorily identified and assessed both compan ies’ cas h flow situation and decisions; contained minor omissions. Excellent identification and assessment of both compan ies’ cash flow situation s and decisions; no critical omissions. Met HP criteria , plus included additional insights and analyses demonstrating additional research and knowledge . 4. Identify and assess each company’s liquidity status. Weight: 2 0% Did not submit , or incorrectly identified and assessed both compan ies’ liquidity status es. Satisfactorily identified and assessed one company’s liquidity status. Satisfactorily identified and assessed both compan ies’ liquidity status es; contained minor omissions. Excellent identification and assessment of both compan ies’ liquidity status es; no critical omission s. Met HP criteria , plus included additional insights and analyses demonstrating additional research and knowledge . JWI 530: Financial Management I Assignment 1 © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed , in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 530 – Assignment 1 (1194 ) Page 6 of 6 CRITERIA Unsatisfactory Low Pass Pass High Pass Honors 5. Demonstrate professional communication and executive presence . Weight: 20% Did not submit , or submission was poorly written ; PPT deck was missing or was not integrated into presentation; delivery was unfocused or off -topic . Delivery and communication me t minimum requirements , but lacked executive presence; PPT deck and written work met basic sub mission requirements; presentation was on -topic , but poorly organized and/or made minimal connections to key topics. Delivery and communication were good; made eye contact; voice was dynamic; presenter used appropriate verbal cues, and wore professional attire; PPT deck , written work and presentation material met all submission requirements for content and length. Deliv ery and communication were excellent; written materials, timing , and content were well organiz ed and clear; made excellent choices of where to focus time and energy to cover the most critical elements. Met all HP criteria , plus infused the delivery with a style and energy that exemplified executive presence; demonstrated exceptionally strong and engaging interaction with support materials without allowing them to distract from the pre senta tion.