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i have two part project.

3 years ago
01.10.2023
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Overviewmodule5.docx
module5Overview.docx
FIN320ProjectTwoFinancialFormulas.xlsx

Overviewmodule5.docx

Overview

Organizations must manage their working capital management to meet their short-term obligations. It's important to consider working capital problems such as excess credit or a low cash balance. This is especially important when you propose new projects or investments. A business can get a competitive advantage in the marketplace if they manage these issues early.

Directions

Look at the business you selected in the Module Two Journal and its financial statements for the most recent fiscal quarter. Complete the calculations for determining working capital. Then tell how the financial statements help determine financial health.

Specifically, you must address the following rubric criteria:

· Financial Statements: Explain the various financial statements needed to calculate a business’s working capital. Also explain how to use each financial statement for the calculation. Give examples to support your claims.

· Working Capital’s Role: Discuss how businesses that manage their working capital well stay healthy.

· Working Capital Interpretation: Use the correct formula to calculate working capital. Then discuss the business’s current financial liquidity position.

· For example, does the business have enough working capital ready to address bills to suppliers? Will there be potential cash inflow at the end of the year?

· Working Capital Management Trend: Discuss the business’s trend in how they manage their working capital.

· Remember that financial statements reflect a specific period of time and the value of the business’s working capital during that period. Use Mergent Online to find financial statements for earlier periods. This will give you a better sense of the business’s trend.

What to Submit

Your submission should be a 2- to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Any sources should be cited according to APA style.

module5Overview.docx

Overview

To prepare for your report in Project Two, you must calculate the financial ratios needed to determine your chosen business’s current financial health. Once you’ve calculated these ratios, you will use the results to analyze the business’s current financial position. This will help you make decisions about how to improve or maintain their financial health. Pay close attention to working capital management. If liquidity is an issue, think about how the company will meet its short-term obligations.

Directions

For the company you chose in the Module Two Journal, open the following documents:

· The balance sheet, income statement, and cash flow statement from the most recent fiscal quarter (from Mergent Online)

· The Ratios Most Recent Fiscal Qtr worksheet in the Project Two Financial Formulas workbook.

· For example, if the most recent fiscal quarter available is the third quarter in 2022, you’ll compare those results to the same financial calculations from the third quarter in 2021.

Use the documents to calculate key financial ratios.

Then open the following documents:

· The balance sheet, income statement, and cash flow statement from the same fiscal quarter one year ago

· The Ratios Same Fiscal Qtr 1 Year Ago worksheet

Use the documents to calculate the same financial ratios. Finally, compare those ratios and analyze your results.

Specifically, you must address the following rubric criteria:

1. Financial Calculations. Calculate accurate financial formulas to assess the business’s current financial health. Specifically, calculate the following formulas using the Ratios Most Recent Fiscal Qtr and the Ratios Same Fiscal Qtr 1 Year Ago worksheets in the Project Two Financial Formulas workbook:

A. Working capital

B. Current ratio

C. Debt ratio

D. Earnings per share

E. Price/earnings ratio

F. Total asset turnover ratio

G. Financial leverage

H. Net profit margin

I. Return on assets

J. Return on equity

2. Fiscal Quarter Comparison. Summarize the differences between the following:

A. The results from your financial calculations of the most recent fiscal quarter

B. The results of the same financial calculations of the same fiscal quarter from one year ago

i. For example, if the most recent fiscal quarter available is the third quarter in 2022, you’ll compare those results to the same financial calculations from the third quarter in 2021.

3. Comparison Analysis. Explain what your calculations and comparison show about the business’s current financial health. Give examples to support your explanation for the following questions:

A. Do the results show the business is financially healthy or unhealthy? Which results indicate this?

B. What might be the causes of the business’s financial success or failure?

C. Is more information needed to determine the business’s financial health? If so, which pieces of information might still be needed?

4. Short-Term Financing. Explain how potential short-term financing sources could help the business raise funds needed to improve its financial health. Base your response on the business’s current financial information.

What to Submit

Your submission should be a 2- to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. You must also submit the following: