****For Prof tutor Only****
Accounting for Managers:
Case Study Part 1, Due March 19th, 2017
Comprehensive Project - Part I
Research and then describe your company's primary business activities. Include:
A brief historical summary,
A list of competitors,
The company's position within the industry,
Recent developments within the company/industry,
Future direction, and
Other items of significance to your corporation.
Include information from a variety of resources. For example:
Consult the Form 10-K filed with the SEC.
Review the Annual Report and especially the Letter to Shareholders
Explore the corporate website.
Select at least two significant news items from recent business periodicals
Submit a written report that is 2-4 pages long. The report should be well written with introductory and concluding paragraphs. References must be appropriately cited. Be sure to address all of the points in Section A above, using all of the resources listed in Section B. Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font. Include a complete bibliography.
Prior to beginning this activity you should review:
Schoenebeck and Holtzman (2013). Interpreting and Analyzing Financial Statements (6th ed.)
Chapter 5: Statement of Cash Flow’s
Fraser and Ormiston (2013). Understanding Financial Statements (10th ed.)
Chapter 4: Statement of Cash Flows
Module 5 Powerpoint [PDF File Size 3.91 Mb]
Case Study Part 2, Due March 26th, 2017
Comprehensive Project - Part II:
The purpose of the second part of the comprehensive project is to compute financial statement ratios.
Based on formulas given in Appendix B, compute the following ratios in Excel for two years.
Debt ratio
Gross profit margin
Free cash flow
Times interest earned
Accounts receivable turnover
Inventory turnover
Prepare a DuPont Analysis of ROE for two years, including computations of
Return on Sales
Asset Turnover
Return on Assets
Financial Leverage
Return on Equity
Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:
stronger / weaker
quicker /slower
more / less liquid
more / less risk
Submit a report. Write a 2-4 page report evaluating trends in all of the above ratios. Discuss whether your company's profitability, efficiency, liquidity, and solvency are improving or deteriorating.
Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.
Prior to beginning this activity, you should review:
Schoenebeck and Holtzman (2013). Interpreting and Analyzing Financial Statements (6th ed.)
Chapter 6: Specific Accounts
Case Study Part 3, Due April 2nd, 2017
Comprehensive Project Part III:
The purpose of the third part of the comprehensive project is to use resources available to obtain industry averages for commonly used ratios. Additionally you will compare company ratio results to industry averages.
Obtain the four-digit primary SIC (Standard Industrial Classification) Code and industry title for your company. Record the primary SIC code and industry title at the top of the Ratio Analysis Worksheet.
Obtain industry averages for commonly used ratios in the current period. Industry average information is reported by industry title or SIC code.
Look up the following industry-average ratios:
Current ratio
Debt ratio
Gross profit margin
Times interest earned
Accounts receivable turnover
Inventory turnover
Return on Sales
Asset Turnover
Return on Assets
Financial Leverage
Return on Equity
Note that some industry averages may not apply to your company.
Submit a report. Write a 2-4 page report comparing the above ratios to industry averages. Discuss whether your company's profitability, efficiency, liquidity, and solvency are better than, or worse then, its peers. Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.
Prior to beginning this activity, be sure you review:
Schoenebeck and Holtzman (2013). Interpreting and Analyzing Financial Statements (6th ed.)
Chapter 7: The Accounting Cycle
Case Study Part 4, Due April 9th, 2017
Final Written Paper
The final written paper requires you to prepare a well-written titled "Would You Advise a Friend to Invest in This Company?" based upon your research and analysis of this company's financial information. You should identify 3-5 significant points that justify your conclusion. Support your points with a comprehensive explanation incorporating sound reasoning.
Your final written paper should be 4-5 pages long. The report should be well written with introductory and concluding paragraphs. References must be appropriately cited. Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.
Prior to beginning this activity be sure you review:
Schoenebeck and Holtzman (2013). Interpreting and Analyzing Financial Statements (6th ed.)
Chapter 8: Comprehensive Review