Posted: February 27th, 2021
MBA 560 Financial Statement Analysis Project As a group of 3-5, you are to act as a financial advisor to a client interested in investing in a specific industry. Your group of 3-5 will research 2 separate companies in the same industry and provide a recommendation to your client which company, if any, your team should invest in. Some possible industries include: Industry Companies (American Companies or foreign companies with U.S. Division) Airline American/Southwest Airlines/United Fast Food Wendy’s/McDonalds Search Engine Google/Yahoo Pharmaceutical Merck/Pfizer/Bristol Myers Squibb Auto Ford/GM Retail Gap/Guess/Abercrombie Beverage Coca Cola/Pepsi Phone Apple/Samsung Publishing Pearson/McGraw-Hill Others? Please confirm with your teaching faculty Your team may select other companies or another industry. Each team in the class must select a different company. Companies must be publicly traded companies. PART A: Write a page instruction of each company background in APA format. PART B: Obtain Financial Statements Obtain 3 years of financial statements (just the Balance Sheet and Income Statement) for your company from SEC.GOV. 3 BALANCE SHEETS AND 3 INCOME STATEMENTS will be submitted. One set per company. PART C: Enter data into FSAP (Financial Statement Analysis Package) Financial Statement Analysis Package (FSAP): Version 7.0. 2, Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 7th. Student can download from the link below: www.cengage.com/resource_uploads/downloads/0324789416_247806.xls Enter the Balance Sheet and Income Statement amounts for 3 years into the Financial Statement Analysis Package Excel file (just the Balance Sheet and Income Statement information, not the Statement of Cash Flows). Make sure your balance sheet BALANCES!!!! Make sure your Net Income matches your Net Income on the Income Statement. Email one FSAP per company. PART D: Company Analysis 3 Focus more on their position within the industry, recent developments, fluctuation in stock prices relative to the market/industry, and other items of significance that would impact your investment decision. Legal issues facing the company. New markets and new products. (4 pages – APA format). Submit 1 paper per team. PART F: Industry Analysis Summarize the economic outlook for your industry. Look at recent market activity, recent indicators impacting your industry. Address recent change in stock prices. Obtain industry averages for your ratio and common size analysis. Identify laws/regulations impacting your industry. Identify market trends and geo/political events impacting your industry. Identify Micro/Macro economic conditions impacting your industry. DO NOTE WRITE ABOUT YOUR INDIVIDUAL COMPANIES. (2 pages – APA format). Submit 1 paper per industry. Data sources: Standard and Poor’s Stock Reports or other Industry Surveys, Mergent’s Industry Review. Finance.yahoo.com, moneycentral,msn.com, hoovers.com, and other financial websites. Examine recommendations of other investment websites (buy/sell/hold). SECTION B: FINAL PAPER OUTLINE (Merged all sections into a single APA paper) A. Write a page instruction of each company background in APA format (1 page in APA format). B. Include Company Analysis (address prior comments) C. Include Industry Analysis (address prior comments) D. Include FSAP summary – Create tables summarizing the analysis tab of your FSAP. Make it look professional. (You are not required to include the whole report in your final research project.) E. Write a summary of the significant findings from the financial statement analysis. (4 pages APA format). Address significant (Focus on the 2-4 items under each) Ratios, Horizontal Analysis, and Common Sized Analysis from the FSAP (look under the Analysis Tab). Do not address all the ratios and every line of vertical and horizontal analysis, just what you feel is important. F. Conclusion: Based on your findings and after reading the other papers in your group, which company, if any, would you invest in? Include specific support for your decision based on your findings in the analysis. Also include support (for or against) investing in the industry you chose. 4 GRADING DO NOT COPY, DO NOT PLAGIARIZE, CITE APPROPRIATELY!!
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