1. Trend analysis for net sales and net income
2. Profitability analysis
3. Evaluation of the ability to sell merchandise inventory
4. Evaluation of the ability to pay debts
5. Evaluation of dividends.
Each section should include a table with financial information and the necessary ratio calculations to analyze that area of the company. After each table, provide approximately one paragraph of analysis. The analysis should include a comparison to industry averages for your company. Conclude the report with your final decision (invest or not invest), incorporating the information and analyses from each section.
Resources available/needed include, but are not limited to:
· Balance sheet and income statement for your chosen company (at least 5 years)
· ProfitCents – for industry comparison
· Textbook Chapter 15
Submit your project in a Word document on Canvas. Include the following documentation with your analysis:
· Copy of all balance sheets and income statements used
· Copy of industry information used from ProfitCents
*Company should be at least 70% merchandising
Please Note: This assignment may be used to evaluate Analytical & Problem-Solving Skills for the College of Business & Management’s Assurance of Learning* process. All student information is removed from the submission when used in this manner. Evaluation of the submission for this purpose is based on the rubric provided below. This rubric may differ from the grading criteria used by your instructor but should be considered as you complete the assignment.
*Assurance of learning refers to the processes for demonstrating that students achieve learning expectations for the programs in which they participate. Schools use assurance of learning to demonstrate accountability and assure external constituents such as potential students, trustees, public officials, supporters, and accrediting organizations that the school meets its goals. Assurance of learning also assists the school and faculty members to improve programs and courses… (Definition from AACSB Eligibility Procedures and Accreditation Standards for Business Accreditation)
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Problem Identification
Clearly defines the problem in actionable terms
Outlines the necessary objectives
Clearly identifies symptoms of the problem
Application of Appropriate Analytical Techniques
Identifies relevant information needed to analyze the problem
Selects appropriate analysis technique(s)
Clearly and concisely describes problem solving/analysis
Considers relevant constraints of the problem situation
Applies analysis techniques appropriately/correctly
Solution Development
Pros and cons of alternative actions clearly presented
Solution and all relevant work is correct
Clearly and concisely describes results and conclusions
Appropriate and logical interpretation of results
Provided recommendations consistent with results
College of Business & Management Undergraduate Learning Goal #2
Our Students will Demonstrate Analytical & Problem Solving Skills
Objective: Students will correctly identify a problem, critically analyze the problem
with appropriate techniques, and develop a solution.