Anyway I can get help with this?
BUS632 – Advanced Financial Statement Analysis
Final Project 1st Part
Due: by 11:59pm EST on Sunday at the end of Unit # 7
Final Project-1st Deliverable:
Attached is 2016 Annual Report for UTX. I want you to review the report but mainly I want you to focus on pages 10-42 of the 78 page report. These area focus on the MD&A of specific activity within the divisions of UTX, forecasts, and then the consolidated financial statements. I want you to get comfortable with the statement and you do not have to memorize it but I want you to review it as you will be using this as a reference.
1st Scenario: The Development of Pro-Forma Statements-Forecasts
Based upon the MD&A, Income Statement, Balance Sheet and Cash Flow Statement from pages 16 & 37-39 I want each student to copy the format of the Segment Review on page 16 and the Income Statement and Balance Sheet from pages 37-38 within an Excel workbook (a tab for each statement) and account for this scenario in which you will develop pro-forma, or forecasted data, within each statement.
Scenario: Honeywell Corp. has decided that they want to grow and expand but instead of building a new product division that have decided that it may be cheaper to purchase a division from their competitor UTX. They have made a tender offer to purchase UTXs Pratt & Whitney (P&W) jet engine division that is worth $14.9B in net sales form 2016 with operating profits of $1.5B and operating gross margin of 10.4%.
The tender offer has been made that consists of $20B that is made up of $15B cash and $5B stock.
1. Within the income statement and balance sheet I want each student to forecast out to 2018 a 3% increase in all categories within each statement. This means that for Net Income from continuing operations the 2017 number will be $5,559B and the Net (loss) would be $(10.3). Balance sheet will be Cash and Cash Equivalents $7372B and AR will be $11825B.
a. I want each category to be forecasted out by 3% for 2017 and 3% for 2018 for all categories within the P/L and Balance Sheet.
b. Choose 5 financial ratio metrics, any 5 you have chosen, and then calculate them based upon the 2017 & 2018 Data.
i. You will run a set of 5 metrics for 2017 and another for 2018.
2. From the sale of P&W I want each student to perform 3 deliverables:
a. Drop in the sale of $15B in cash and $5B debt in the correct categories within the P/L and Balance Sheet.
b. Deduct the net sales and operating profits from the Income Statement and then recalculate 2017 & 2018 categories for just the Income Statement
c. Redo the metrics for 2017 & 2018 and then compare them from 1.B
3. Develop a shorty White Paper on the impacts of the sale of P&W and how it will affect sales.
a. Use your metrics and the changes in them for example.
i. This does not must be more than 1 page that you can embed within your workbook.
Thus, this 1st part of the project will have multiple tabs within a workbook and for each scenario I want to see a new tab and please clearly label each tab for each scenario and on the headers for all your papers.
Students: Be sure to read the criteria, by which your paper/project will be evaluated, before you write, and again after you write.
TaskPointsEarnedComments
Has the student performed adequate analysis based upon their
pre-defined ratios deriving from company examples data?30
Has the student shown applicable critical thinking skills within
their analysis and redevelopment of financial data?30
Has the student provided ample and solid support to senior
management stemming from recommendations?30
Free from error, spelling and grammar5
1000
Sound use of APA 6th principles
5