Accounting 2410

Financial Analysis Project

This project is a chance for you to complete a Financial Analysis on a company of
your choice. It is due 3/2/15. The schedule allows for a full week in late February in
which this is your only assignment.
Assume:
We have hired you, as a Financial Consultant, to determine if we should invest
in this business. If so, should we invest in their debt or their equity? Assume
we are paying you $20,000, and prepare accordingly!
Required:
You have agreed to perform a financial analysis on the company and then
write a 5-7 page report (not including appendices), including graphs and
charts, on your findings. Include your recommendation on if we should invest
in this business, and if so, in their debt or their equity?
This assignment needs to be submitted on Connect AND uploaded to your My
Majors page in your ePortfolio. (30 points are awarded for uploading to your
ePortfolio.) See instructions for uploading to your ePortolio included with this
assignment as a separate document.
Here is how the project should progress:
1. Select a company. Pick one that is publically traded and is listed on the NYSE.
2. Acquire the companys latest annual report by visiting their website. Save it
to your computer for future reference. Print the current year Financial
Statements. Locate and print the prior years financial statements. Having
both years will allow you to calculate trend data. Submit the financial
statements with your report as Appendix A.
3. Prepare a ratio analysis of the company using the list of ratios provided on
page 4 and 5 of this document. Skip any ratios that do not apply to your
company. Prepare a single page of your calculated ratios, grouped by the 5
categories noted in red. Include the numbers used to calculate the results.
Submit with your report as appendix B.
4. Visit Hoovers.com on the SLCC web site and print out the Competitive
Landscape (instructions below), and any other information from the site you
find helpful. Submit as Appendix C.
5. To access Hoovers:
a. Go to WWW.SLCC.EDU
b. Click on A-Z Index.
c. Click on Library.
d. Click on Databases.
e. Click on Mergent Hoovers in the drop down menu.
f. Click on the right-pointing-arrow to the right of the drop down menu.
g. Click on continue. Enter your company name. Look around at what is
available. Click on Competition and select Competitive Landscape from
the drop down menu. Print.
6. Compare your Financial Analysis with what the one from Hoovers. (Some
results may be slightly different.) How does your company compare with their
competitors and the market?
7. Using the information you have gathered prepare a written report. Including
an introduction to the paper, a body, and a conclusion. Discuss each of the
five areas noted in red on the list of ratios, (you do not have to include every
ratio.) Charts and graphs of important data should be included. Make an
investment recommendation based on the information presented. Proof read
1

the report carefully. Consider visiting one of the SLCC Writing Centers for help
finalizing your work. (Visit the SLCC website and search on Writing Center for
a list of locations.)

8. The final report should a 5 to 7 page written summary of your findings, by

category. Include the requested appendix items. Submit to your instructor.
Grading: Your individual grade will consist of:
Financial Analysis-Based on Appendix A and B
50%
Written Report based on rubric score (page 3)
50%
9. Submit the entire document via the link on Connect. If your file is too big
email it to your instructor or drop it off in the Accounting Lab, bb118.
10.Upload the assignment to your ePortfolio My Coursework ,My Majors page.
Link it to the Acct2410 row if you are using the suggested department format.

Acct 2410 Financial Statement Analysis Project Rubric

Criteria

Well Below
Expectations

1-Context and Purpose:

Prepare a written analysis that
communicates the financial
health of a business written for
a person with a reasonable
background in business.

There is not an
identification of the
purpose of the paper
written in language
appropriate for the
audience.

There is a weak
attempt to identify
the purpose of the
paper in language
appropriate for the
audience.

2-Claims:
Draw an accurate conclusion
for each of the listed
categories as to how it
impacts the financial health of
the business.

2 pts.
Did not draw an
accurate conclusion
on how each
category impacted
the financial health
of the business.

4 pts.
Drew accurate
conclusions on how
each category
impacted the
financial health of
the business less
than half of the time.
8 pts.
Used ratio analysis,
trends, and industry
averages as support
for conclusions
reached in each of
the categories less
than half of the time.
4 pts.
Drew a weak,
somewhat accurate
conclusion regarding
the overall financial
health of the
business based on
the results of the
analysis.
8 pts.
Made 4-6 mistakes
when adhering to
conventions of
grammar,
punctuation,
spelling, mechanics,
and usage.

2-Credible:
Use the ratio, trend analysis,
and industry comparisons as
support for the conclusion
reached in each of the listed
categories.
4-Analysis and
Connections:
Draw an accurate conclusion
regarding the overall financial
health of the business based
on the results of the analysis
of the listed categories.
5-Control of Syntax and
Mechanics:
The document adheres to the
conventions of grammar,
punctuation, spelling,
mechanics, and usage.

4 pts.
Did not use ratio
analysis, trends, and
industry averages as
support for
conclusions reached
in each of the
categories.
2 pts.
Did not draw an
accurate conclusion
regarding the overall
financial health of
the business based
on the results of the
analysis.
4 pts.
Made more than 6
mistakes when
adhering to
conventions of
grammar,
punctuation,
spelling, mechanics,
and usage.
7 pts.

Below
Expectations

14 pts.

Total-Rubric (75 points)

Total-Financial Statement
Analysis (75 points)
Total score for project
(150 points)

Meets
Expectations

Exceeds
Expectations

There is a
reasonable
identification of the
purpose of the paper
in language
appropriate for the
audience.
6 pts.
Drew accurate
conclusions on how
each category
impacted the
financial health of
the business more
than half of the time.
12 pts.
Used ratio analysis,
trends, and industry
averages as support
for conclusions
reached in each of
the categories more
than half of the time.
6 pts.
Drew a mostly
accurate conclusion
regarding the overall
financial health of
the business based
on the results of the
analysis.

There is a clear and

complete
identification of the
purpose of the paper
in language
appropriate for the
audience.
8 pts.
Consistently drew
accurate
conclusions on how
each category
impacted the health
of the business.

12 pts.
Made 1-2 mistakes
when adhering to
conventions of
grammar,
punctuation,
spelling, mechanics,
and usage.

16 pts.
Consistently
adheres to
conventions of
grammar,
punctuation,
spelling, mechanics,
and usage.

21 pts.

27 pts.

16 pts.
Consistently used
ratio analysis,
trends, and industry
averages as support
for conclusions
reached in each of
the categories.
8 pts.
Drew a completely
accurate conclusion
regarding the overall
financial health of
the business based
on the results of the
analysis.

Pts.

Rations for Financial Analysis- Page 1