Kim Woods Accounting

Assignment: Financial Analysis Report

This assignment applies some of the principles of accounting analysis learned in this course, by analyzing the financial statements of a real company. The assignment is to be done individually. Each student must select a different company, on a first come first serve basis. Once you have selected your company, be sure no one else has chosen that company by indicating this on our Blackboard course website. You will be able to find the financial information about the company on the company's website or through other research methods.

Part A:

Prepare a written report containing the following information:

a) Name of company

b) List of the products sold or services performed

c) Date of the financial statements

d) A list of five key ratios.

1. Working Capital

2. Current Ratio

3. Debt to Total Assets

4. Earnings Per Share

5. Net Debt

Part B:

Prepare a paragraph analysis and summary of the major financial and non-financial strengths and weaknesses of the firm (approximately half a page). Be sure to include the company’s strategies for solving its problems and its outlook for the future.

For part b, I would like to see a paragraph that:

1.  Tells me what you have found about the financial strengths and weaknesses of the company - E.g. are they profitable? What product or service is their main revenue source? Do they have any significant expenses outside of the normal course of their business that are negatively impacting their financial position? These are just a few examples of the many questions you would be trying to answer as a potential investor in the company.  Financial strengths and weaknesses can also be gleaned from the ratios that you calculate.

2.  Tells me what you have found about the non-financial strengths and weaknesses of the company - E.g. Are they introducing an innovative new product or service? (Strength).  Are they subject to uncertainty through a lawsuit that could negatively impact their operations and therefore bottom line? (Weakness)

3.  Tells me any strategies they are employing or will employ to solve any problems they have or improve upon their business.  What plans (short and, or long-term) does the company have or what actions will the company take to solve a particular problem they have encountered? What is the intended impact of these strategies/plans on their future?

Part C:

Based on the analysis you have performed, provide a brief paragraph explanation as to why you would or would not invest $10,000 in this company.

Additional Requirements:

· Company web pages may be a source of additional info, but keep in mind the date of your annual report.

· Include a title page and your sources.

· Your analysis should be no more than 2 pages.

Use References from Company’s Financial Statements and other known sources