Assignment 2: You Are an Investment Analyst
Due Week 10 and worth 320 points
As
the CFO of your corporation, you are in charge of preparing and
analyzing financial statements that will be presented to potential
investors and creditors. However, before you can present the financial
statements to investors and creditors, you need to prepare the financial
statements with supporting analysis. Select one (1) pair of the
following companies to conduct your financial statement analysis.
- Pepsi versus Coca Cola, or
- Amazon versus eBay
Write an eight to ten (8-10) page paper in which you:
- Analyze
each company’s history, product / services, major customers, major
suppliers, and leadership, and provide a synopsis of each company. - Identify
three (3) profitability ratios that creditors may be interested in.
Calculate the ratio for each company, and prepare a report to summarize
your findings on the financial health of each company. Also, recommend
to management the manner in which they can improve each of the three (3)
ratios identified. - Summarize at least two (2) news events (this
may include mergers, acquisitions, or political issues) that occurred
from 2012 to the present day, and analyze the impact that these events
had on each company’s financial statements. Indicate the primary way in
which the merger, acquisition or political issues influence potential
investors’ and creditors’ perception of both companies. - Analyze
each company’s income statement over the past two (2) years, and
determine which company outperformed the other. Suggest a way in which
the lagging company can improve its income. Support your suggestion with
a specific analysis. - Analyze each company’s balance sheet.
Prepare a vertical analysis for each company, interpret the results, and
write a financial report. Also, suggest the manner in which the company
that is not performing well can improve its balance sheet in order for
it to be attractive to potential investors. - Use at least four (4) quality academic resources in this assignment.Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
- Be
typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides; citations and references must follow APA
or school-specific format. Check with your professor for any additional
instructions. - Include a cover page containing the title of the
assignment, the student’s name, the professor’s name, the course title,
and the date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this assignment are:
- Prepare
and analyze financial statements including the balance sheet, income
statement, and statement of cash flow according to GAAP and IFRS. - Calculate financial ratios, interpret results, and draw conclusions.
- Use technology and information resources to research issues in financial accounting.
- Write clearly and concisely about financial accounting using proper writing mechanics.
Grading
for this assignment will be based on answer quality, logic /
organization of the paper, and language and writing skills, using the
following rubric.
Clickhereto view the grading rubric
