Financial project

Seton Hall UniversityBACC2103Spring 2022Financial Accounting Project
Inthis project, you will use your understanding of financial accounting toprepare an analysis of an assigned company’s financial statements. To prepare youranalysis, you will use Microsoft Excel and data from the internet. Then,you will communicate the results of your analysis in a written report.
Thisproject will help you build your critical thinking, technology, andcommunication skills.
Thisproject is a required component of BACC2103, Financial Accounting. Toreceive a passing grade in this course, you must complete and submit the entireproject by the required deadlines.
Part 1 –The Financial Statements (20 points) – Due Monday, February 7th at 3 pm.
Thispart consists of two steps:
Step1 – For the company assigned to you:A. Obtainthe latest Annual Report (or it may be referred to as the SEC Form 10-K) from thecompany’s Investor Relations website.B. Fromthis report, locate the four basic financial statements (i.e., Balance Sheet,Income Statement, Statement of Changes in Stockholders’ Equity, and Cash FlowStatement[1]).C. Extractonly these pages and save as a PDF file.D. Submitthis PDF file on Blackboard by the required due date.E. Safethe complete copy of the Annual report / 10-K as a PDF file. You will be referring to this in later partsof this project.
Step 2 – Withinthe Annual Report obtained in Step 1, you will find a section describing yourcompany’s business. After reading thissection, prepare a one to one-and-half page paper describing how your companygenerates revenue, including a description of their various business segmentsif your company has multiple businesses to which revenue is generated. Based on this limited information you havegathered so far, conclude with a “guess” as to whether you would invest in yourcompany or not. You may change youconclusion after you have completed all parts of this project.
Part 2 – Completingthe Excel Template for the Balance Sheet & Income Statement (5points) –Due Monday, February21st at 3 pm.
A. Downloadthe project’s Excel template from Blackboard.B. Usingthe Balance Sheet and Income Statement obtained in Part 1, input thesestatements into the appropriate tabs found in this template (columns A to C onthe “Balance Sheet” and “Income Statement” tabs).
Youdo not need to input the information found in the Statement of Changes inStockholders’ Equity and Cash Flow Statement.But you may need this information in analyzing your company’s overallfinancial performance and preparing your paper.
Part 3 – Preparethe Common-size & Variance Analysis for the Balance Sheet & IncomeStatement(10 points)– Due Wednesday, March 21st at 3 pm.
This part consistsof two steps.
Step #1 – Usingthe completed Excel template for the Balance Sheet & Income Statement fromPart 2, complete columns E and F for theCommon Size – Vertical Analysis, and columns H & I for the Variance –Horizontal Analysis found on the “Balance Sheet” & “Income Statement” tabs.
FOR THESE CALCULATIONS, YOU MUST ONLY USE FORMULAS WITH CELLREFERENCES. DO NOT CALCUATE THE REQUIREDAMOUNTS OUTSIDE OF THIS TEMPLATE AND MANUALLY INPUT THE RESULLTS! POINTS WILL BE DEDUCTED IF YOU DO SO.
A partial example ofthese requirements is provided in the first few lines on the Balance Sheet andIncome Statement tabs.
Step #2 – Completethe “Financial Ratios” tab.
CONSISTENT WITH PART 3, YOU MUST ONLY USE CELL REFERENCES ANDFORMULAS TO COMPLETE THESE RATIOS. DONOT CALCUATE THE RATIOS OUTSIDE OF THIS TEMPLATE AND MANUALLY INPUT THERESULLTS! POINTS WILL BE DEDUCTED IF YOUDO SO.
Part4 – Written Report (65 points) Due Wednesday, April 20th at 3 pm.
Prepare at least a three-pagepaper addressing each of the topics listed below
1. Howprofitable is your company? Referring back to the Variance – HorizontalAnalysis on the “Income Statement” tab (Column H & I), identify three tofour significant variances and provide explanations for why they arechanging. You will find the discussionswithin the Management, Discussion & Analysis section (Item #7) of yourcompany’s Annual Report / 10-K to be helpful.In addition, the Common-Size Vertical Analysis for the income statementmay assist in adding additional content.2. Whatis your overall assessment of your company’s financial performance? Review the Common-Size – VerticalAnalysis and the Variance – Horizontal Analysis on the “Balance Sheet” tab aswell as the various ratios found on the “Financial Ratios” tab, assess thecompany’s performance with regards to asset management, liquidity, andsolvency. You do not need to address all of these. Only that which is most relevant to the next topic.3. Wouldyou buy or sell an investment in your company’s stock? Referring to all the information you have gatherand the most recent stock price and price-to-earnings ratio, provide aconclusion as to why you would or would not invest in you company. Your answer should be from the view of along-term investor; not that of a “day-trader.”
Organization. Your report should be organized in a logical manner. Do not simply describe formulasfor the various ratios but discuss the drivers impacting the balances used in these formulas.In addition, your paper is limited to three to four pages. So please, do not wasted space. Statements should be concise. Points will be deducted for obvious statementsthat are not necessary.
Professional Quality. Prepare your report as a professional-lookingdocument for which you were paid a great deal of money. Be careful with grammarand spelling; business leaders have a zero-tolerance policy regarding basicspelling and grammar mistakes. Use Microsoft Word, double-space, with one-inchmargins.
Proper Referencing. Copying or rewording another report withoutproper citation and quotation is plagiarism. In the body of the paper, includeproper references to all written materials and internet sources with a completepage of sources used at the end. Thispage will not be counted towards the required three to four pages.
Submission. Before Wednesday, April 20th at 3 pm, submit adigital copy of the written report in Blackboard. The document should be saved inMicrosoft Word labeled as [Last name in CAPS] [Company name].docx [e.g.,REITEMEYER Ford Motor Company]. Please do not submit as a PDF file.
Your report willbe graded based on the comprehensive coverage and accuracy of your analysis, usinga clear and concise writing stylethat is easy to understand, and professional in its appearance. Tables, graphs,charts may be provided, but only if they are relevant and are referred towithin the text to add clarity. Theywill not be count towards the required three to four pages.
[1]The exact wording for the title of these statements may vary from what isreferred to here. In addition, theirtitle will generally begin with the word “Consolidated.” For example, the balance sheet may be titled“Consolidated Balance Sheet,” or “Consolidated Statement of Position.” You can easily identify these four statementsby the information present in them.