TWO PAPERS (1000 words each)

This assignment has an individual and a group component.

Individual Assignment

Select a company quoted on the main market of the London Stock Exchange. The company you choose should not be drawn from the financial or banking sectors. Obtain a copy of the latest published and audited annual financial statements. Using appropriate accounting ratios calculated by you directly from the financial statements prepare a report analysing the performance of the company for the last 2 years under the following headings:

1. Profitability,

2. Liquidity,

3. Working capital management,

4. Solvency & risk,

5. Shareholder return,

6. Overall financial performance.

Your report should be 1,000 words in length (± 10%). The following should be attached to the hard copy of your assignment as appendices and need not be included in the word count:

• A copy of the financial statements you have used, including as a minimum:

  • a Statement of Profit & Loss (and Other Comprehensive Income);

  • a Statement of Financial Position;

  • a Statement of Cash Flows;

  • a Statement of Changes in Equity.

• The accounting ratios you have calculated for both years including full workings.

• References (where appropriate) and a bibliography.

Group Assignment

With a colleague from the class, prepare a report comparing the financial performance of the two companies which were the subject of your individual assignments. The companies should in the same industrial sector and sub-sector. Your report should consider the same headings as for the individual assignment, and should be of 1,000 words in length (±10%). The following should be attached to the hard copy of your assignment and will not be included in the word count:

• The accounting ratios used in the individual assignment including full workings.

• Any further accounting ratios (and their workings) you have calculated for comparative purposes.

• References where appropriate and a bibliography.