Portfolio Project

This is the assignment I will need, and it has to be written on EXXON
MOBILE. Let me know if you can do this and then we can talk payment.
If your work is good I will keep using you in the future.

This Portfolio Project has two parts: calculations and a 4- to 6-page
essay. While the calculation requirements of this assignment are
important, equally important are your discussion and analysis of the
quantitative results. You will submit two documents: 1) a spreadsheet
containing your horizontal and vertical analysis (and perhaps your
ratios) and 2) a word document containing your essay.
Choose a publicly traded company and perform an expanded analysis on
the financial statements. Please use the most current 10K statements
available on www.sec.gov http://www.sec.gov/ or annual statements in
finance.yahoo.com http://finance.yahoo.com/. You will submit both
parts separately.

Part 1: Please complete the following for your chosen firm in an Excel
spreadsheet:

    Horizontal and vertical analysis of the Income Statements for the
past three years (all yearly balances set as a percentage of total
revenues for that year).
    Horizontal and vertical analysis of the Balance Sheets for the
past three years (all yearly balances set as a percentage of total
assets for that year).
    Ratio analysis (eight ratios of your choosing) for the past three
years PLUS a measurement for the creditworthiness of your firm as
measured by Altman’s Z-score.  Note that if you used your chosen firm
for our ratio-related discussion posts, then you MUST also present
industry-average ratios or current year competitor ratios for your
ratio analysis. Comparing your firm’s ratios to a close competitor or
an industry-average ratio makes your analysis much more meaningful.

Part 2: The Paper:

    4-6 pages in length.
    Include a proper introduction and conclusion.
    Include a reference page.
    Your paper should provide your reader with an overall
understanding of the financial health of your chosen firm including
the following:
        Discussion of the ratio analysis results, including rationale
for the ratios chosen.
        Discussion of all horizontal and vertical analysis from above.
        Discussion of four items from the management discussion of the
firm that support the conclusion formed in your discussion of the
financial results.

Much of this course has concentrated on learning the financial
statements, primarily because there was not an accounting
prerequisite. Because of this concentration, you may find this
assignment challenging. However, if you understand the financial
statements, then the horizontal and vertical analysis should
(hopefully) be rather intuitive. For example, if you see sales rise by
20%, then shouldn’t you also see net income rise by 20% or more if the
managers are effective at controlling costs?  If you see sales rise by
20% and assets rise by 40%, we have to ask why this is happening. It
would appear that assets have risen too far given the sales that are
generated from those assets—why did this occur?  You may have to
research that type of question and discuss it in your analysis.

You’ve had some experience with financial ratios through Discussion
Board.  I’d suggest that you start your ratio analysis with the four
ratios found in the DuPont equation. If you discover a weakness in one
component of the DuPont ratios, then it would make sense to look at
ratios that are closely related to the troublesome ratio. For example,
if you discover that the asset turnover is declining over time, then
take a look at some related ratios such as the inventory turnover rate
or the average collection period. If you discover that the equity
multiplier is increasing (indicating greater reliance on debt), then
look at some related ratios such as the debt ratio or Times Interest
Earned. These ratios are discussed in our textbook, even though you
may not have been assigned to thoroughly read the chapters.