Write a five-to seven-page financial statement analysis of a public company,
formatted according to APA style as outlined in the Ashford Writing Center.
In this analysis you will discuss the financial health of this company with
the ultimate goal of making a recommendation to other investors. Your
paper should consist of the following sections: introduction, company
overview, horizontal analysis, ratio analysis, final recommendation, and
conclusions. Your paper needs to include a minimum of two scholarly
resources in addition to the textbook as references.
Here is a breakdown of the sections within the body of the assignment:
Company Overview
Provide a brief overview of your company (one to two paragraphs at most).
What industry is it in? What are its main products or services? Who are
its competitors?
Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance
sheet of your selected company. Discuss the importance and meaning of
horizontal analysis. Discuss both the positive and negative trends
presented in your company.
Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio,
over a two-year period. Discuss and interpret the ratios that you
calculated. Discuss potential liquidity issues based on your calculations
of the current and quick ratios. Are there any factors that could be
erroneously influencing the results of the ratios? Discuss liquidity issues
of competitive companies within the same industry.
Recommendation
Based on your analysis would you recommend an individual invest in this
company? What strengths do you see? What risks do you see? It is
perfectly acceptable to state that you would recommend avoiding this company
as long as you provide support for your position.
Writing the Final Paper
1. Must be five to seven double-spaced pages in length, and formatted
according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
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