Unit 9 Final Project

Assignment: Part 1

Choose two public companies of your choice from one of the business financial database websites or from SEC documents and explain how the following financial statements are necessary for strategic business decisions.

Explain how the financial statements are necessary for strategic business decisions:

 This should be your thesis– In your introductory paragraph you state your overall intention in the essay.

 Then in the main body of your essay, address all the questions.

 For your conclusion, summarize what you have described as to how this information is helpful in making better strategic management and personal investment decisions.

Each paragraph should have at least four–five sentences.

 Paragraphs 1—2: Introduce your topic

 Paragraphs 2—5: Provide support for your argument

 Paragraphs 5—7: Provide a conclusion

Using critical analysis write an expository essay that addresses the items on the checklist and the critical elements found below. An expository essay means investigating the topic, analyzing the data or information, supplying the results of your analysis, and supporting your position.

Checklist:

 Review the financial statements below from two separate public companies by locating this information on the internet from a financial database. Review the financial

statements (as specified below) from the last three years.

 Examine the following financial statements for each company:

Statement of cash flow

Balance sheet

Income statement

 Determine if there is an overall trend in each statement for each company over the

three-year period. Based on your analysis of the data, how is this knowledge helpful to

management in making strategic business decisions?

 How might such an analysis be helpful to you as a current or future investor in a

company?

Assignment: Part 2

Part 2: As an investor, one needs to analyze the financial statements in order to make a decision.

This Assignment is asking you to review and analyze the financial statements and to write an expository essay regarding a company’s financial situation. After analyzing the 2nd and 3rd tab information (Income statement and Balance Sheet) on the Excel Spreadsheet LOCATED BELOW, write a 1–2 page expository essay in APA format and citation style addressing the following:

Checklist items:

 Describe those accounts that are increasing and decreasing more than 10% and

 Provide some reasoning as to why the accounts are increasing or decreasing.

 Discuss how you would encourage people to invest in this company.

Instructions regarding writing your expository essay:

Each paragraph should consist of at least four–five sentences.

Paragraphs 1 to 2: Introduce your topic

Paragraphs 2 to 5: Provide support for your argument addressing the Checklist items

Paragraphs 5 to 7: Provide a conclusion

APA requirements

a. Title page

b. 12 pt. font - Times New Roman

c. A separate title and reference page

d. Double-spaced

Income Statement
	2013		2012
Sales	$ 6,350,250		$ 3,432,000
Cost of Goods Sold	$ 5,635,014		$ 2,864,000
Gross Margin	$ 715,236		$ 568,000
Operating Expenses	$ 563,130		$ 358,672
EBITDA	$ 152,106		$ 209,328
Depreciation & Amortization	$ 118,320		$ 18,900
EBIT	$ 33,786		$ 190,428
Interest Expense	$ 144,015		$ 43,828
EBT	$ (110,229)		$ 146,600
Taxes (40%)	$ (44,092)		$ 58,640
Net Income	$ (66,137)		$ 87,960
Statement of Retained Earnings, 2013
Beginning Balance Retained Earnings	$ 203,768
Add: Net Income	$ (66,137)
Less: Dividends	$ (11,000)
Ending Balance Retained Earnings	$ 126,631

Balance Sheets
	2013		2012
Assets
Cash	$ 14,250		$ 57,600
Accounts Receivable	$ 550,330		$ 351,200
Inventories	$ 1,287,360		$ 715,200
Total Current Assets	$ 1,851,940		$ 1,124,000
Gross Fixed Assets	$ 1,113,500		$ 491,000
Less: Accumulated Depreciation	$ 257,333		$ 146,200
Net Fixed Assets	$ 856,167		$ 344,800
Total Assets	$ 2,708,107		$ 1,468,800
Liabilities & Equity
Accounts Payable	$ 504,250		$ 145,600
Notes Payable	$ 586,000		$ 200,000
Accruals	$ 405,300		$ 136,000
Total Current Liabilities	$ 1,495,550		$ 481,600
Long-Term Debt	$ 625,926		$ 323,432
Common Stock	$ 460,000		$ 460,000
Retained Earnings	$ 126,631		$ 203,768
Total Equity	$ 586,631		$ 663,768
Total Liabilities & Equity	$ 2,708,107		$ 1,468,800