Finance 4IP

Excel spreadsheet + a Word document (2 pages)

Part I

Deliverable Length: 1-page Word document (Bank of America)

Review the general business information, letter or report to shareholders, and management's discussion and analysis of the company provided in the annual report.

• Summarize the business. Consider the following:
  • The business entity as a whole including the demographic location
    • Where is the business located?
    • Does the business have a physical building(s)?
    • It may help to understand if a business location compliments or discredits what is presented in the financial statements.
  • How the business is organized:
    • Corporation
    • Partnership
    • Proprietorship
  • Length of time in business
  • History of the business
  • Is the company currently involved in litigation?
• Explain management's analysis of the company and predictions for the future.

Part II

Deliverable Length: (Bank of America

Same Word document (see Part 1) + an Excel spreadsheet

Review the financial statements and then respond to the following questions:

1. Calculate the following ratios:
   • Net profit margin
   • Debt to equity
   • Quick Ratio
2. Perform a trend analysis on net income after interest and taxes.
   • What is the overall financial condition of the company based on your analysis?