Financial Statement Analysis - Final Project

Perform an in-depth analysis of an assigned company using its most recently available financial statements.Some concepts pls refer to the material Ch7 as attached. Read carefully about theMD&A in the company’s annual report and form 10K in which you may find the bias, the future strategy and any important information from the company’s management.

• Assigned Company: Barnes & Noble, Inc

• Barnes & Noble’s Form 10-K link to:

http://www.sec.gov/Archives/edgar/data/890491/000119312514253539/d728575d10k.htm

• Barnes & Noble’s Annual Report as attachment.

The results of your analysis should be summarized in a 6-8 page (single space)analysis report that concludes with an investment recommendation.

The following are the minimum requirements of your analysis report:

1. Background information:

   1. A brief historical summary

   2. A list of competitors

   3. The company’s position within the industry

   4. Current developments within the company and/or industry

   5. Future prospects/direction of the company

2. Prepare a 10 year stock price chart (10 year-end points of reference) and explain the trends portrayed. Be sure to include a current stock quote.

3. Using a Microsoft Excel file (electronic submission is required):

   Ratio Summary Sheet (formulas) is attached.

   1. Common-size the balance sheet, income statement & cash flow statements of the company for the past 3 years.

   2. Perform a trend analysis of the balance sheet, income statement and cash flow statement for the same 3 year period.

   3. Identify, evaluate and comment on significant 3 year trends.

4. Building upon the file created in 3 above by adding a new worksheet, prepare a ratio analysis of the company for the most recent 2 years. Be sure to include, minimally, the calculation of the following ratios and to disaggregate where appropriate:

   1. Current Ratio

   2. Debt Ratio

   3. Gross Profit Margin

   4. Times Interest Earned

   5. Accounts Receivable Turnover

   6. Accounts Payable Turnover

   7. Inventory Turnover

   8. Return on Equity

   9. Return on Assets

5. Identify, evaluate and comment on significant 2 year trends in the company’s ratios.

6. Using resources available to obtain industry norms (e.g. moneycentral.msn.com or finance.yahoo.com), compare your company’s ratios to its industry norms and comment on your company’s performance and position.

7. Make your recommendation.

8. Addendum: Written responses to selected questions posed by investor. The questions will be provided.

Timing:

• The final analysis report is due no later than ......

Grading:

• The final project will account for 25% of your grade. The evaluation of the project will be weighted as follows:

  • Calculations: 30%

  • Comments and evaluations drawn: 50%

  • Addendum responses: 20%