Explain how you formed the forecasted income statement

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Assignment: LASA- Study Company Report

For this assignment, use the study company approved by your facilitator in Module 1 when addressing the following questions in a 10-12 page report.

1. Present a ratio analysis of your Study Company using data for the most recent year and the previous year. Show formulas and steps to generate each ratio. Include in your analysis, ratios that measure liquidity, profitability, and asset management. Write an analysis of the ratios and the conclusions that can be drawn by comparing the metrics of the company for the two years.

2. Develop the forecasted (pro forma) income statement. Use a historical average of past sales growth for the sales growth rate assumption. Explain how you formed the forecasted income statement. Define all assumptions you used in forming your forecasted statement.

3. Explain why the bottom-line earnings (net income) metric receives so much attention. Explain the multiple drivers of the bottom-line earnings in the forecasted income statement.

4. Identify at least three stakeholder groups for your company that could be impacted by company efforts to increase this bottom-line number. Explain in what way they would be impacted.

5. Determine if your study company follows the for-profit only model, or, the alternative business model aligned with the needs of people and planet. Justify your response.

Write a 10-12 page report in MS Word format. Apply APA standards for writing style to your work.

Reference no: EM131237444

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