Accounting assignment for Top pro

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project_2_instructions_and_grading_rubric.docx

Project 2 Instructions and Grading Rubric

Project 2 will consist of completing the Comprehensive Problem for Chapter 15 which can be found on page 951 of the text. You are asked to calculate a series of ratios and utilize these figures in a variety of analysis to determine the viability of this firm as a sound investment. You can use either Excel or Word to create and submit your data. No other file formats are permitted. (You must show all the supporting data and the calculation used for each ratio. If you just turn in the ratios without support for how you got them, you will receive a zero for that portion of the assignment). Listed below you will find hints on how to lay out the data. Use these hints, plus the grading rubric listed below to complete your assignment. This project is worth 12.5% of your course grade, so I suggest you give it the attention it deserves for the best possible score.

In each of requirements 1-5 you will create a table of data. At the top of each column of data you should list the years. Since 2014 is the base year in each case you should have the year 2018 as the first column after the description of the row and the last column should be the year 2014.

Sample:

Item Description

2018

2017

2016

2015

2014

 

Requirement 1: Worth 20%

Here you should have listed net revenues and the trend percentage for each and then Net Earnings and the trend percentage for each.

Sample:

Item Description

2018

2017

2016

2015

2014

Total Net Revenues

 

 

 

 

 

Trend Percentages

 

 

 

 

 

Net Earnings

 

 

 

 

 

Trend Percentages

 

 

 

 

 

 

Requirement 2: Worth 10%

Here I would expect to see the 2 components that make up the profit margin followed by the Profit Margin Ration itself.

Requirement 3: Worth 10%

Here I would expect to see the data and calculations for the Gross Profit Percentage, the Inventory Turnover and the Days Sales in Inventory for each of the 5 years.

Requirement 4: Worth 30%

Here I would expect to see the data and calculations for the Debt Ratio, Debt to Equity Ratio, Times Interest Earned Ratio, Current Ratio, and Quick Ratio for each of the 5 years.

Requirement 5: Worth 10%

Here I would expect to see the data and calculation of the Dividend Payout Ratio for each year.

Analysis Requirement: Worth 10%

Write an analysis of not more than one page that touches on each ratio trend calculated (whether it is positive or negative) and incorporate these trends into a final recommendation for whether you feel this firm would be a good investment or not.

This assignment is due by 11:59 PM Eastern time on May 3rd. No Late assignments will be accepted.