1408 Words6 Pages

Course Project for Financial Statement Analysis
ACCT 4336
Summer 2012
Project Counts 30% of Grade
Dennis McCuistion
Assignment
Based on your analysis of the company financial statements and any relevant supplementary information you can obtain about the firm and its operating environment, identify areas in which the company is performing well (strengths) and advise management of any problem areas (weaknesses). Include in your analysis an assessment of how the firm’s strengths and weaknesses affect its credit worthiness and investment potential.
The required questions to be answered for your company during the semester are taken from the text web case questions. It is highly recommended that you answer these questions as we*…show more content…*

Net income/net sales. 2. Net income/total assets. 3. Net income/common equity. 4. Net income/invested capital. 5. Sales/plant and equipment. 6. Sales/total assets. 7. For your company, comment on the 5-year trends in the profitability ratios. 8. For the peer company, comment on the 5-year trends in the profitability ratios. 9. Compare your company’s profitability ratios with the peer company profitability ratios. 10. Compare the profitability ratios for four competitors. I. Chapter 9 Required 1. Review the earnings per share forecasts. Comment on how these forecasts could influence the market value of the common stock. 2. What is the price/earnings ratio for your company? 3. Comment on how the price/earnings ratio is influenced by the earnings per share forecasts. 4. What is the “Market Capitalization” for your company? 5. Why is the market capitalization different than the common stockholders’ equity? 6. Comment on the trend in the dividend payout. J. Chapter 10 Required 1. Select the cash flow from operating activities for the five most recent years. 2. Comment on the trend in cash flow from operating activities. II. Firm, Industry, and Environment A. Description of firm and its

Net income/net sales. 2. Net income/total assets. 3. Net income/common equity. 4. Net income/invested capital. 5. Sales/plant and equipment. 6. Sales/total assets. 7. For your company, comment on the 5-year trends in the profitability ratios. 8. For the peer company, comment on the 5-year trends in the profitability ratios. 9. Compare your company’s profitability ratios with the peer company profitability ratios. 10. Compare the profitability ratios for four competitors. I. Chapter 9 Required 1. Review the earnings per share forecasts. Comment on how these forecasts could influence the market value of the common stock. 2. What is the price/earnings ratio for your company? 3. Comment on how the price/earnings ratio is influenced by the earnings per share forecasts. 4. What is the “Market Capitalization” for your company? 5. Why is the market capitalization different than the common stockholders’ equity? 6. Comment on the trend in the dividend payout. J. Chapter 10 Required 1. Select the cash flow from operating activities for the five most recent years. 2. Comment on the trend in cash flow from operating activities. II. Firm, Industry, and Environment A. Description of firm and its

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