What key feature of the organization help set the boundaries

Assignment Help Financial Accounting

Reference no: EM131765343

Assignment

Chosen Company: Kroger Grocery Store

After reviewing Kroger Grocery Store's organization context, you will conduct a financial analysis of the company's financial statements for the last three consecutive years. Your analysis should include the review and interpretation of data from the following financial statements: the income statement, the balance sheet, statement of cash flow, and statement of retained earnings. Based on the review of the financial statements, assess the organization's financial performance and financial health. Provide support for your assessment.

Prompt: As a newly-hired manager at a company of your choosing, your first task is to review the company's past and current financial performance and health and make initial financial projections in order to begin planning for the upcoming year. Your report will include several financial tables, along with a comprehensive narrative describing the organization's context, financial performance, and health. Note that, in addition to the organization's financial statements and website, other authoritative news sources-such as annual reports and external sites like Bloomberg.com-may offer insights that facilitate analysis or provide information on the organization's priorities, challenges, and geographic distribution.

In particular, you must cover:

A. Organizational Context

1. What key features of the organization (e.g., major products or services, customers, location, etc.) help set the boundaries for business decisions? In other words, what key goods or services does your organization provide, for whom, where, and why?

2. How is the company organized and managed (e.g., by product groups, geographic region, function, etc.)? How does that affect accounting and financial information and subsequent business decisions?

B. Recent Financial Performance

1. Assess what the organization's consolidated income statements for the last three years say about its financial performance. Use relevant indicators, graphs, and spreadsheets to support your narrative. (Include all spreadsheets in an appendix.) For example, what do the amounts and year-to-year changes in revenue, operating income, net profit or loss, and Earnings Before Interest, Taxes, Depreciation, and Amortization tell you? Do any items stand out?

2. Assess what the organization's consolidated cash flow statements for the same time period say about its financial performance. Use relevant indicators, graphs, and spreadsheets to support your narrative. For example, what do the amounts and year-to-year changes in cash from operating activities, cash from investing, cash from financing, and total cash flow tell you? Do any items stand out?

3. Assess the organization's underlying financial performance. Support your answer with the analysis above and relevant research. For example, is recent performance substantially affected by unusual events such as a major acquisition or spin-off? Is the business thriving or struggling in its industry? How do you know?

C. Current Financial Health

1. Assess how the organization is capitalized and what that tells you about its financial health. Support your response with relevant graphs, spreadsheets, and indicators such as "cash and cash equivalents," total debt, shareholders' equity, current ratio, debt/equity ratio, and Days Sales Outstanding (DSO). For example, does the organization have enough cash for payroll and other bills? Does it have the right mix of debt versus equity (stock)? How do you know?

2. Does the organization have the right amount of cash and other resources (e.g., key people, technologies, reputation, physical assets, etc.) to fuel future growth? What does this suggest for business decisions? For example, if it has too much cash, should it pay a large dividend, repurchase its own shares, or reinvest the excess funds?

3. Assess the financial value of the company using relevant indicators. What does your assessment imply for future business health and performance? For example, what is the business's current market value? What is its price-to-earnings ratio? What do these suggest about investor perceptions of the business's future?

Attachment:- Financial-Report.rar

Reference no: EM131765343

Questions Cloud

Simple interest amortized loan : Guy dePrimo buys a new car for $9,837.91. He puts 10% down and obtains a simple interest amortized loan for the rest at 8 7/8% interest for four years.

Ethical implications of each of the above proposals : You are the director tasked with explaining to the owners the ethical implications of each of the above proposals.

At what level of sales would company net income be same : For nearly 20 years, Specialized Coatings has provided painting and galvanizing services for manufacturers in its region. Manufacturers of various metal.

Criminal penalties for a violation of sarbanes oxley : Do you agree with the imposition of criminal penalties for a violation of Sarbanes Oxley? Should corporations be subject to criminal penalties? What penalties c

What key feature of the organization help set the boundaries : What key features of the organization (e.g., major products or services, customers, location, etc.) help set the boundaries for business decisions?

Compute the economic profit at an imputed interest rate : If invested capital is defined as total assets minus current liabilities, the economic profit (residual income) at an imputed interest rate of 20% is _____

What technique will be used for data collection : What technique will be used for data collection (e.g., observation, survey, interview, archival, etc.)?

Stakeholders-risk and procurement management : project quality, human resources, communications, stakeholders, risk, and procurement management.

Same after-tax return : What interest rate on a 7-year corporate bond of equal risk would provide you with the same after-tax return?

User Account

All Pages