Ration Analysis by pptfiles

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									BAT4M Company Analysis                            Task #5 – The Final Product

This task has FOUR segments PLUS instructions on how the final product will look.

Segment 1 - Notes to Financial Statements
   Read the notes to the financial statements and answer the following questions
   FULLY and in paragraph format:

   1. What method of depreciation did the company use?
   2. What method was used to determine the value of inventory?
   3. Was there anything unusual disclosed in the notes?
   4. Is the company involved in any lawsuits? How do you expect the outcome to affect
      the company?
   5. Were there any intangible assets listed?

Segment 2 - Ratio Analysis
This segment will be done in business report style; single-spaced, left-aligned and one
blank line between paragraphs. When doing your ratio analysis, ensure that you show all
numbers used for the particular calculation and reference each number to the page in
the report where it was found. If a particular ratio cannot be computed, specifically
explain why it cannot be computed.

1. Conduct a ratio analysis that will shed light on the success of the business from the
   point of view of short-term creditors. Some items you should include are current
   ratio, quick (acid test) ratio, working capital, inventory turnover, and accounts
   receivable turnover. Does the company appear to be a good credit risk in the short-
   term? Why?

2. Conduct a ratio analysis that will shed light on the success of the business from the
   point of view of long-term creditors. How does the company’s solvency look? In
   addition, examine the articles you have collected. Consider any factors from the
   articles that you see as relevant; for example, the current economy, a new product line,
   5 year performance, etc. In your opinion, will the company be able to pay off long-term
   debt and pay interest as it comes due? Why?

3. Conduct a ratio analysis that might be done by common shareholders and in which
   creditors and investors will be interested. Some of the items to include are the
   earnings per share of common stock, return on common shareholder equity, and profit
   margin. Does the company appear to be a good investment? Why?

Segment 3 – Timeline
Using the articles you have gathered, prepare a timeline of your company from your first
article to your last. The timeline may be done in a table, graphically, computer-generated,
hand-done, etc. The choice is yours. Each point on the timeline will have a brief
description of the event. While not required, graphics depicting your events would be an
added touch.
Segment 4 – Summary
State your overall opinion on your company’s outlook. Use all the information from above,
including the ratio analysis, notes and timeline. Include the SWOT analysis.



What will I hand in?
  1. One individual self-reflection per group member that provides a detailed
     description of your individual contribution to the overall project.
  2. One completed peer-evaluation per group member.
  3. Binder containing all assignment sheets, tasks, redoes and rubrics (if applicable).
  4. Title page that includes the company logo, team logo, mission, names of group
     members, my name, date and course code.
  5. Your annual report and all articles.
  6. Clear sections with dividers/tabs. The sections will be labeled as follows:
          a. Task 1, task 2, etc (1 for each of the 5 tasks)**
          b. Annual Report (or Interim Report)
          c. Peer Evaluation (10 marks)
          d. Self Reflection (10 marks)
          e. Presentation

**Task 1 divider will contain the annual report
**Task 3 divider will contain your articles
Peer Evaluation (10 marks)                                 My name: _________________________

     Grade all group members excluding you on each of the items below.
                                                                                Group Members' Names
              Level 4=exceptional 3=average 2=some 1=very little
                        R=did nothing N/A=does not apply


Evaluation Attributes

1.    Attended all meetings both in and out of class.

2. Stayed on task during meetings.

3. Quality of contribution to group discussions; also took the time to listen
   politely and attentively.
4. Quality of contribution to writing the assignments.

5. Quality of contribution to organizing assignments.

6. Leadership, inspiration provided to the group.

7. Helped group meet deadlines.

8. Encouraged others.

9. Reliability in completing assigned jobs and their share of the work.

10. Would want to work with again (do not comment on yourself).

Now that you have considered the above 10 points, move to the chart below. Briefly describe
why you assigned the level grades above. This anecdotal evidence will enhance the instructor’s
knowledge of the group dynamic. In addition, the instructor may comment here based on his/her
observations.

      Group Members' Names                          Why I assigned the above grades.
Self Reflection (10 marks)                               My name: ________________________

  This is an individual self-reflection. It will provide a detailed description of your
  individual contribution to the overall project. You may wish to comment on what you
  learned through this exercise, areas you preferred, or your thoughts on the process.

  This will be done in business report style (single-spaced, left-aligned, one blank line
  between paragraphs).

  Copy and paste this header onto your reflection before you print it.
      K&U, APP, T&I, COMM                    Evaluation for Task 5 and Presentation
                                                                          80 marks
Checklist
1.   Self-reflection submitted.                                           □
2. Peer evaluation submitted.                                             □
3. All task sheets in the binder.                                         □
4. All rubrics in the binder.                                             □
5. All tasks/redoes in the binder.                                        □
6. 12 articles present.                                                   □
7. Title page present with all required information (company logo,        □
   team logo, mission, names of group members, my name, date and
   course code).
8. Dividers present.                                                      □
9. Sections separated as directed.                                        □
Rubric
                     Criteria                          Level 1    Level 2         Level 3        Level 4
                                                      (50-59%)   (60-69%)        (70-79%)      (80-100%)
                                                       Minimal       Moderate      Meets        To a high
                                                                                requirements     degree
Notes to Financial Statements (10)
Notes are correctly examined in order to satisfy
the questions being asked.

Ratio Analysis #1 (10)
Ratios (including current ratio, quick (acid test)
ratio, working capital, inventory and accounts
receivable turnover) are calculated correctly. (5)

Sheds light on the success of the business from
the point of view of short-term creditors.
Answers the question: Does the company appear
to be a good credit risk in the short-term?
Why? (5)

Ratio Analysis #2 (10)
Ratios (including debt/total assets, interest
coverage) are calculated correctly, and other
information used to fill in a complete picture. (5)

Sheds light on the success of the business from
the point of view of long-term creditors.
Answers the question: Will the company be able
to pay off long-term debt and interest as it
comes due? Why? (5)
                    Criteria                        Level 1    Level 2     Level 3        Level 4
                                                   (50-59%)   (60-69%)    (70-79%)      (80-100%)
                                                    Minimal   Moderate      Meets        To a high
                                                                         requirements     degree
Ratio Analysis #3 (10)
Ratios (including earnings per share of common
stock, return on common shareholder equity, and
profit margin) are calculated and analyzed
correctly. (5)

Sheds light on the success of the business from
the point of view of common shareholders,
creditors, and investors. Answers the question:
Does the company appear to be a good
investment? Why? (5)



Timeline (10)
12 articles are effectively summarized so that
the essential points are clear. (6)

Directions are followed regarding the nature and
timing of the articles. (2)

Timeline demonstrates creativity. (2)

Summary (10)
Overall opinion ties the analysis together.
Concisely explains the financial position of the
company, having taken all aspects of the project
into account. (5)
Include SWOT analysis. (5)
Presentation (20)
The presentation was well planned, and
effectively relayed the company performance to
the class. (4)

Reference was made to the ratio analysis and the
timeline. (2)

Use of creativity/technology. (2)

Delivery was clear, appropriate and effective.
Made constant eye contact with the class. (10)

Proper Business attire. (2)

								
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