Posted: May 14th, 2022
The objective of this team project is to use what you have learned to evaluate the overall financial health of a company using ratio analysis. The team will also use financial data to compare companies within the same industry, calculate projected results, determine if objectives will be met by a company, and recommend a course of action. There are four independent parts to this assignment.
Tablon Inc. is a wholly owned subsidiary of Marbel Co. The philosophy of Marbel’s management is to allow the subsidiaries to operate as independent units. Corporate control is exercised through the establishment of minimum objectives for each subsidiary, accompanied by substantial rewards for success and penalties for failure. The time period for performance review is long enough for competent managers to display their abilities.
Each quarter, the subsidiary is required to submit financial statements. The statements are accompanied by a letter from the subsidiary president explaining the results to date, a forecast for the remainder of the year, and the actions to be taken to achieve the objectives if the forecast indicates that the objectives will not be met.
Marbel management, in conjunction with Tablon management, had set the objectives listed below for the year ending May 31, 2018. These objectives are similar to those set in previous years.
Tablon’s controller has just completed the financial statements for the six months ended November 30, 2017, and the forecast for the year ending May 31, 2018. The statements follow.
After a cursory glance at the financial statements, Tablon’s president concluded that not all objectives would be met. At a staff meeting of the Tablon management, the president asked the controller to review the projected results and recommend possible actions that could be taken during the remainder of the year so that Tablon would be more likely to meet the objectives.
Place an order in 3 easy steps. Takes less than 5 mins.