Reference no: EM132576964

Management's Discussion and Analysis (MD&A)

Question 1: What are the company's strategic focuses, i.e., goals and objectives, and how does it plan to meet them? Use information that you have gathered so far to make a decision. Support your conclusion with a few statements.

Question 2: Review management's discussion and analysis of results of operations and financial condition of your company's annual report. Identify key strengths and weaknesses with regard to capital resources, liquidity, and results of operations.

Question 3: Learning More about Your Company and Its Industry- From your study up to this point, what appears to be the company's strategic focus? Support your conclusion with a few statements.

Question 4: Review your company's balance sheet and compare accumulated depreciation to the historical cost of Plant and Equipment (PE) using the following ratio.

Question 5: If this company were to be acquired by another company, would the intangible assets influence the purchase price? Explain your answer.

Question 6: Prepare a common-sized balance sheet using the elements below. Modify where necessary to meet your needs. Add or delete elements that are or are not relevant to your company. (Nc means no change)

Question 7: Identify the three balance sheet accounts that changed the most in Question 12. What events might explain these changes? Are your responses similar to or different from Question 11? Why?

Question 8: Why do you think the regulatory agency in GCC requires that balance sheets provide two years of comparative financial information and income statements provide three years of comparative financial information?

Question 9: If any of the irregular events are shown on your company's income statement, describe the nature and the amount. Select the most current year affected by the event if multiple years are affected.

Question 10: Identify the dilutive instruments that give rise to the reporting of diluted earnings per share (see the EPS note to the financial statements).

Question 11: Is the SCF dated in the title for a period of time similar to the income statement or for a point in time similar to the balance sheet? Why?

Question 12: Explain why net sales, net income and net operating cash flows are trending together or differently. (Hint: Look at depreciation expense and substantial changes in inventory, accounts receivable, and accounts payable balances. Explaining why is a key learning point.)

Question 13: Consider three key issues at this point. Is the company adding assets? This is a sign of growth. Is the company replacing assets? This is a sign of growth and stability. Is the company only selling assets? This is a sign of retrenchment.

Question 14: Consider two key issues at this point. How is the company being financed, through debt or equity? Can you determine which is growing faster and why? A sound corporate strategy is to finance a company with debt during stable times, because this demands regular payment of principal and interest, and to finance a company with equity during unstable times, because leadership can elect to pay or not pay dividends.

Question 15: Is your company's dividend yield a reasonable return given current market conditions? Explain.

Question 16: How does your company value its "inventories"? Explain the meaning of the inventory valuation method. Are domestic and international inventories valued the same? Service companies will typically not have inventory.

Question 17: Reviewing note #1 and any related notes, identify the amount of goodwill presently reported.

Attachment:- Project.rar