Question;Ashford 6: - Week 5;Discussions;To participate in the following discussions, go to this week's Discussion link in the left navigation.;Ratios;Ratios provide the users of financial statements with a great deal of;information about the entity. Do ratios tell the whole story?;How could liquidity ratios be used by investors to determine whether or;not to invest in a company?;Guided Response;Let at least two of your peers know how debt service ratios can be used by;a lender in determining whether or not to lend money to a company. Profit Margin;Year;Ending December 2012;Year;Ending December 2011;Year;Ending December 2010;Revenues;40,000;35,000;33,000;Operating Expenses;Salaries;15,000;10,000;9,000;Maintenance and Repairs;6,000;9,000;10,000;Rental Expense;2,500;2,500;2,500;Depreciation;2,000;2,000;2,000;Fuel;4,000;3,500;2,500;Total Operating Expenses;29,500;27,000;26,000;Operating Income;10,500;8,000;7,000;Sales and Administrative Expenses;6,000;4,000;3,000;Interest Expense;2,500;2,000;1,000;Net Income;2,000;2,000;3,000;Above is a comparative income statement for Cecil, Inc. for;the years 2010, 2011, and 2012. Calculate the profit margin for each of;these years. Comment on the profit margin trend.;Guided Response;Let at least two of your peers posts know what you changes you would recommend;to improve the net margin of the company.;Exercise Assignment;To complete the following assignment, go to this week's Assignment link in the left navigation.;Financial RatiosPlease complete each of the exercises below in a word document. Save the;document, and submit to in week using the Assignment Submission;button. Week Five Exercise Assignment;Carefully review the Grading Rubric for;the criteria that will be used to evaluate your assignment.;Final Paper;To complete the following final paper, go to this week's Final Paper link in the left navigation.;Final PaperFocus;of the Final PaperWrite a five-to seven-page financial;statement analysis of a public company, and 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;3. Must begin with an introductory;paragraph that has a succinct thesis statement.;4. Must address the topic of the paper with critical thought.;5. Must end with a conclusion that reaffirms your thesis.;6. Must document all sources in APA style, as outlined in the;Ashford Writing Center.;7. Must include a separate reference page, formatted according;to APA style as outlined in the Ashford Writing Center.
Paper#45476 | Written in 18-Jul-2015Price : $47