Discussion and Assignment – Financial Decision Making

1. Financial Ratios
    
   What are the limitations of financial ratios?  Classify your answer into at least the following categories: liquidity ratios, activity ratios, leverage ratios, and profitability ratios.  classmates’ postings.
2. Financial Analysis
    
   R.E.C. Inc.’s staff of accountants finished preparing the financial statements for 2010 and will meet next week with the company’s CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year’s annual report.  Write a paragraph in which you present the main idea(s) you think the company should present to shareholders in the annual report.  

Assignment
To complete the following assignment, go to this week’s Final Paper link in the left navigation. 

Final Paper: Financial Statement Analysis

The Final Paper is due on Day Seven of Week Six.  The paper will be a comprehensive Financial Statement Analysis. The Final Paper will contribute 25% to the course grade.

Focus of the Final PaperThe student will select a company of their choosing and prepare a fundamental financial analysis of the firm from its published financial statements.  After selecting the firm and analyzing its most recently published Annual Report (financial statements), submit an eight-to-ten page paper (excluding appendixes, cover page, abstract, and references).  The report will cover each of the following broad areas that make up a fundamental analysis of the financial statements of a publicly held firm:  (a) background on the firm, industry, economy, and outlook; (b) short term liquidity; (c) operating efficiency; (d) capital structure; and (e) profitability.

Writing the Final Paper
The paper:

• Must be eight- to ten- double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide.  Title, reference, and any exhibits or appendices are not counted in the paper length. 
• Must include a cover page that includes:
• Title of paper

Student’s nameCourse name and numberInstructor’s nameDate submittedMust include an abstract after the title page according to APA style in the approved APA style guide.Must include an introductory paragraph with a succinct thesis statement.Must address the topic of the paper with critical thought.Must include citations to references that support the assertions made in the paper.Must conclude with a restatement of the thesis and a conclusion paragraph.Must use APA style as outlined in the approved APA style guide to document all sources.Must include, on the final page, a Reference List that is completed according to APA style as outlined in the approved APA style guide.