Unit 4 Individual Project Deliverable Length: 5-10 PowerPoint slides / can inclu
ID: 2371295 • Letter: U
Question
Unit 4 Individual ProjectDeliverable Length: 5-10 PowerPoint slides / can include an Excel file for financial analysis
Details: Choose a public company in the food industry. Analyze the financial statements and assess whether the financial performance has improved or declined year-over-year.
Analysis techniques include the following:
comparative financial statements
trend analysis
ratio analysis
percentage analysis
Presentation of 5–10 PowerPoint slides that includes the following:
At least 3 slides relevant to the analysis prepared
An analysis of the performance of the firm based on the analysis tools used
A summary of the company's financial performance and assessment of whether it has improved or declined year-over-year in terms of profitability, asset utilization, and liquidity
Background on Course Research Requirements: In the business world, it is important to use research to strengthen points made in presentations and projects. Learning to use the search functions in databases for research is a crucial critical thinking skill that complements other research techniques.
There are two main types of databases. You must stay away from inferior Web sites with anonymous writers; articles found on consultant Web sites, and materials on Web sites that are not reputable. Dictionaries and encyclopedias most often repeat the information from textbooks. Acceptable Internet resources include, among others, government sites (especially for statistics). Wikipedia or any open source Web sites are not permitted.
Please submit your assignment.
Explanation / Answer
Slide 1
Comparative financial statements
Comparative financial statements financial statements, the current statement and the statement from the previous accounting period, presented together for comparative purposes.
For example, it is generally accepted that a corporation's income statement will show the most recent three years of results. This provides the reader with two years of past amounts as a frame of reference for the most recent year. Comparative balance sheets typically show the most recent two years.
Slide 2
Analysis of Comparative Balance Sheets
In order to analyze your comparative balance sheets and develop your Statement of Cash Flows, you first consider any increases or decreases in your current asset and current liability accounts between the two years of balance sheet information.
Comparative financial statements are ones, which have been prepared in a systematic manner and provides statistical information about a particular event (financial transaction) or aspect, taking place on different dates or during different periods.
Comparative financial statements, like all other financial statements have the following types of financial statements:
Income statements
Cash flow statements
Balance sheet
Slide 3
Trend Analysis
Trend analysis calculates the percentage change for one account over a period of time of two years or more
Percentage change
To calculate the percentage change between two periods:
Calculate the amount of the increase/(decrease) for the period by subtracting the earlier year from the later year. If the difference is negative, the change is a decrease and if the difference is positive, it is an increase.
Divide the change by the earlier year's balance. The result is the percentage change.
Slide 4
RATIO ANALYSIS
Ratio-analysis is a concept or technique which is as old as accounting concept. Financial analysis is a scientific tool. It has assumed important role as a tool for appraising the real worth of an enterprise, its performance during a period of time and its pit falls.
Ratio-analysis means the process of computing, determining and presenting the relationship of related items and groups of items of the financial statements. They provide in a summarized and concise form of fairly good idea about the financial position of a unit. They are important tools for financial analysis.
It’s a tool which enables the banker or lender to arrive at the following factors :
Liquidity position
Profitability
Solvency
Financial Stability
Quality of the Management
Safety & Security of the loans & advances to be or already been provided
Slide 5
Classification of Ratios
Balance Sheet Ratio
P&L Ratio or Income/Revenue Statement Ratio
Balance Sheet and Profit & Loss Ratio
Financial Ratio
Operating Ratio
Composite Ratio
Current Ratio
Gross Profit Ratio
Fixed Asset Turnover Ratio, Return on Total Resources Ratio,
Quick Asset Ratio
Operating Ratio
Return on Own Funds Ratio, Earning per Share Ratio, Debtors’ Turnover Ratio,
Proprietary Ratio
Expense Ratio
Debt Equity Ratio
Net profit Ratio
Stock Turnover Ratio
Note-
You can breakdown this slides into 10 slides if you want it took so much time and effort so please read fully Thank you....
Balance Sheet Ratio
P&L Ratio or Income/Revenue Statement Ratio
Balance Sheet and Profit & Loss Ratio
Financial Ratio
Operating Ratio
Composite Ratio
Current Ratio
Gross Profit Ratio
Fixed Asset Turnover Ratio, Return on Total Resources Ratio,
Quick Asset Ratio
Operating Ratio
Return on Own Funds Ratio, Earning per Share Ratio, Debtors’ Turnover Ratio,
Proprietary Ratio
Expense Ratio
Debt Equity Ratio
Net profit Ratio
Stock Turnover Ratio
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