Explain investement decision by financial analysis

Assignment Help Marketing Management

Reference no: EM1337562

Explain Investement decision by financial analysis

Your parents have been left a substantial amount of money and want to invest in a company. Your father trusts you to make a recommendation, but also wants to see the reasoning behind your choice

You have an idea of which company to choose, and you decide to prepare three sets of documents for your parents to consider: business analysis, combined income and cash flow statement, and trend analysis.

Business analysis

Select a public company that trades on either the NYSE or the NASDAQ. Perform a business analysis (both external and internal) for your company using various sources of information. Possible sources include the following:

Annual report and/or Form 10-K
Magazine or newspaper articles
Company website
Government information
Industry information
Value Line, Standard & Poor's, Moody's, etc.
Analyst reports
Internet articles
Your analysis should be approximately five pages long. Be sure to cite your sources using APA guidelines.

Combined income and cash flow statement

Download the company's annual report from its website, or the company's Form 10-K from the U.S. Securities and Exchange Commission (SEC) website [www.sec.gov].

Confirm that the firm's income, dividends, and other capital transactions explain the change in equity for the most recent year. (You may need to consult the statement of shareholders' equity.)
Confirm that the firm's cash flow statement begins with the same net income amounts found in the income statement.
Confirm that the firm's cash flow statement shows a change in cash that is equal to the difference between cash shown on the balance sheet at the beginning and end of the year. In Excel, construct a combined income statement and cash flow statement.
Write 1-2 paragraphs that answers the following: what would you do if you found there was a huge difference in the net income amounts and the reported cash flow amounts? How could technology limit the likelihood of this happening again?
Trend analysis

Finally, prepare a trend analysis of operating ratios for at least three years' worth of financial data. Prepare the analysis in Excel. You may wish to create a common-sized income statement first, but it isn't required.

If you adjusted for any nonrecurring items in step (1), explain the adjustments in a separate Word document. Use any other information in your company's annual report to explain the change in revenues, gross margin percentage, and operating margin percentage. Add this information to the Word document.

Reference no: EM1337562

Questions Cloud

Explain market strategies for a local product to market : Explain Market Strategies for a local product to market in China- develop a marketing plan

General electrics production : Are General Electrics production facilities centralized or decentralized?

Hypertext technology allow web pages to be processed : How are the different features of Web pages emphasized or made more accessible by variations in design?

Miller and modigliani model : According to the Miller and Modigliani model dividened policy is irrelevant. However, there are numerous factors in the real world that violate the MM assumptions.

Explain investement decision by financial analysis : Explain Investement decision by financial analysis and what would you do if you found there was a huge difference in the net income amounts and the reported cash flow amounts

Elucidate how your explanation differs from the explanation : Elucidate how your explanation differs from the explanation for the downward sloping demand curve for a single product.

Explaining statement of cash flows : Describe the content and layout of a statement of cash flows, including it three sections. List at least three transactions classified as investing activities in a statement of cash flows.

Forward selection, backward elimination & stepwise selection : Describe and discuss the difference between forward selection, backward elimination, and stepwise selection for the imputation of variables in a regression equation.

Design and develop a list of factors : choose an organization for analysis and develop a list of factors (minimum 5) associated with high Performance. For each factor you identify, develop a rating scale from 1 to 5 (at least one of the factors must have a rating of 1 or 2). A 1 means ..

User Account

All Pages