Course analysis project

Acct 635/FIN 700 Final Project Grading Rubric (total 200 points possible)

Item Points Possible Instructor notes

1. Business analysis contains a thorough discussion of a firm’s competitive challenges and evaluation of its business plans/goals. In particular, please perform:

a. Porter’s Five Forces Analysis of Competitive environment of the company.

b. SWOT analysis and analysis of risks facing the company. Please refer directly to the risk disclosures the company provides in its most recent 10-Ks.

/20

2. Project contains analysis of most recent news surrounding the company from multiple news sources and provides consideration of how this news analysis impacts business analysis. In particular, you must provide a summary of: a. News articles for the most recent

two years for the company. b. Discussion of the last four

quarterly earnings releases and earnings releases conference calls and strategic company issues raised in those earnings releases and conference calls.

/15

3. Project contains a discussion of critical accounting issues facing the company

/15

as well as discussion of risk of possible mis-application of accounting rules that could hurt investors, including consideration of incentives to commit accounting fraud (e.g. due to excessive growth expectations). In particular, please discuss whether the company’s revenue recognition policy is consistent with that of its competitors. Discuss if there are any obvious red flags suggesting management may want to manage earnings or misstate earnings outright. Discuss levels of a company’s accruals and how they compare to the competitors (whether they are in particular excessively high). Discuss any unusual changes in ratios which may suggest earnings management risks (for example excessive declines in AR or inventory turnovers or overall declines in turnover ratios). Discuss if a company has material accounts which require significant management judgments, and thus could be vulnerable to manipulation (e.g. significant estimates such as goodwill).

4. Project contains a thorough discussion of applicable ratio analysis with respect to implications for future profitability and future cash flows.

/30

5. Project contains a clear discussion of how business analysis, accounting analysis as well as ratio analysis impact assumptions surrounding forecasts of future financial statements.

Please be very clear on how ratio patterns affected your forecast judgments and predictions. Please be very specific in your discussions of the assume sales and expenses growth rates. Please do not assume constant, persistent growth rates without clear justification. Please make sure to EXPLICITLY tie these growth rates assumptions to your earlier discussion of competition.

/30

6. Project contains well-presented forecasted financial statements (income statement and balance sheet)

Please include your assumption worksheet and make sure that your forecasted balance sheet is in balance.

/30

7. Project is organized and presented in professional manner (i.e. contains an executive summary, appropriately organizes the text and has clear and neat presentation of exhibits)

/20

8. Writing is clear and is free of mechanical errors.

/20

9. Project presentation was well organized, within appropriate time limits and followed professional requirements as stipulated in the Professor’s Writing and Presentations Video.

/20

Points Earned

/200