Financial Statement Analysis Paper Written Assignment

One basic method that an accountant can use to analyze the financial situation of a business is ratio analysis. This can be a useful tool no matter the type of legal structure of the business and regardless of whether ownership is public or private. To help assure the availability of the necessary data, though, this assignment will be focused solely on a publicly traded company. As an overview, you will choose a publicly traded company from a list provided at the end of this assignment. Locate the company's website, retrieve the latest company's annual report from that site, calculate specific ratios for the latest two fiscal years, and respond to a limited number of analysis questions. Please note that this entails far more than finding precalculated ratios from a website such as Yahoo! Finance or Google Finance. If you desire, you can use such a site for a reasonableness check on the results of your calculations, but any such comparisons should not be part of your resulting paper. Also, you might not match exactly to their figures anyway because those may include quarterly updates. The paper should be three to four double-spaced pages (not counting the cover page and bibliography). The font size should be 12-point and the type can be Times New Roman, Verdana, or Arial. Your paper should be properly cited using APA referencing style. This means that citations should be in a bibliography and in the body of the paper wherever you refer to or directly quote any information or terms from other sources. Please submit your paper no later than midnight Sunday at the end of Week 6. For the section showing the ratio calculations, provide appropriate details regarding the formula used, the source of the data, and the resulting calculations. Although you are certainly welcome and encouraged to use Excel to complete these tasks, copying and pasting from Excel into the Word document is discouraged unless it can be done in a manner that is cosmetically appropriate. The requirements for the ratio analysis section are as follows. Compute the following for each of the two most recent years. Profit margin Return on shareholders' equity Current ratio Interest coverage ratio Document your work by properly citing items such as the following. The website for the company The web page link for the annual report The page number of the annual report Appropriate details of the calculations

The questions that should be addressed in the second section of the paper are as follows.

If you were an accountant for a potential vendor for this company, explain which of these ratios would be of the most interest to you. Would there also be a second ratio of interest to you?
If you were an accountant for a potential investor in this company, explain which of these ratios would be of the most interest to you. In your opinion, what other ratio or ratios beyond the ones listed above should also be considered in an investment context?
What is your overall opinion of this company based on the limited analysis completed via the four ratios?

Feel free to mention any questions that you feel should still be considered in view of the ratios or the changes from one year to the next. Please also consider these suggestions for your success on this assignment. If you choose a company from the list and have any trouble finding its website, the annual reports, or specific information, consider selecting a different company from the list instead. If the company has subsidiaries, be sure to use the consolidated financial statements. Be sure to use the financial statements rather than summaries elsewhere in the annual report. List of companies (choose one):

Barnes & Noble, Inc.
Intuit Inc.
The Kroger Co.
Macy's Inc.
Dell Inc.
Family Dollar Stores Inc.
Kodiak Oil & Gas Corp.
Tractor Supply Company
Verizon Communications Inc.

Show work for full credit

Jim Jasons is thinking about starting a company to produce high performance video gaming computers. He loves playing video games. He sees it as an opportunity to be his own boss, making a living doing what he likes best. Jim paid $1,000 for training, and he has already purchased new equipment costing $10,000 to assemble the computers. He estimates that it will cost $750 in materials (case, monitor, keyboard, graphics card, CPU, etc.) to make each computer. If he decides to make computers full time, he will need to rent office and manufacturing space at an estimated $1,200 per month for rent plus another $300 per month for various utility bills. Jim would perform all the manufacturing and run the office, and he would like to pay himself a salary of $5,000 per month. Jim plans to hire two salespeople at a base salary of $1,500 each per month plus a commission of $100 per computer. Jim plans to sell each computer for $1,500. He believes that he can sell 50 computers in December for Christmas, but he is not sure what the sales will be during the rest of the year. However, he is sure that the computers will be popular because so many of his friends play video games. Overall, he is confident that he can pay all his business costs, pay himself, the monthly salary of $5,000 and earn at least $2,000 more than that per month. (Ignore income taxes.)

The following questions will help you analyze the information for this problem. Use Excel for all calculations and Microsoft Word for the written portion. One team member will submit one file in Canvas. You will be graded on accuracy and organization.

A. Preform analyses to estimate the number of computers Jim would need to manufacture and sell each year for his business to be financially successful:

1. List all the costs described and indicate whether each cost is (a) a relevant fixed cost, (b) a relevant variable cost, or (c) NOT relevant to Jim’s decision.

2. Calculate the contribution margin per unit and the contribution margin ratio.

3. Write down the total cost function for the computers and calculate the annual breakeven point in units and in revenues.

4. How many computers would Jim need to sell annually to earn $2,000 per month more than his salary?

B) Suppose Jim asked for your advice. Use the information you learned from the preceding analyses to write a memo to Jim with your recommendations.

PART A ANSWERED: 1.) Relevant Fixed Costs Monthly: Rent $1,200, Various Utility Bills $300, Own Salary $5,000, Base salary for salespeople $3,000 (1500*2), Total Fixed Cost per month $9,500,

Relevant Variable Cost per unit: Cost of materials $750, Sales Commission $100, Total Variable Cost per unit $850

Not Relevant to the decision, Cost of trainning $1,000, Cost of Equipment $10,000, These are sunk cost, already incurred

CONTRIBUTION MARGIN Sales Price per unit $1,500 Variable cost per unit $850 Contribution Margin per unit=1500-850 $650 Contribution Margin Ratio=650/1500= 0.433333

3 TOTAL COST FUNCTION: TC=850Q+9500 TC=Total Cost Q=Quantity Sold

Breakeven Point in Units=Fixed Cost/Unit Contribution Margin Breakeven Point in Units=9500/650 14.61538 Rounded to whole number, Break even point in units 15 Break Even point in Revenue=$1500*15 $22,500

4 Net Earning =$2000 Number of Units to be sold=15+2000/650 =18

PLEASE JUST ANSWER PART B! Thx you

Jim Jasons is thinking about starting a company to produce high performance video gaming computers. He loves playing video games. He sees it as an opportunity to be his own boss, making a living doing what he likes best. Jim paid $1,000 for training, and he has already purchased new equipment costing $10,000 to assemble the computers. He estimates that it will cost $750 in materials (case, monitor, keyboard, graphics card, CPU, etc.) to make each computer. If he decides to make computers full time, he will need to rent office and manufacturing space at an estimated $1,200 per month for rent plus another $300 per month for various utility bills. Jim would perform all the manufacturing and run the office, and he would like to pay himself a salary of $5,000 per month. Jim plans to hire two salespeople at a base salary of $1,500 each per month plus a commission of $100 per computer. Jim plans to sell each computer for $1,500. He believes that he can sell 50 computers in December for Christmas, but he is not sure what the sales will be during the rest of the year. However, he is sure that the computers will be popular because so many of his friends play video games. Overall, he is confident that he can pay all his business costs, pay himself, the monthly salary of $5,000 and earn at least $2,000 more than that per month. (Ignore income taxes.)

The following questions will help you analyze the information for this problem. Use Excel for all calculations and Microsoft Word for the written portion. One team member will submit one file in Canvas. You will be graded on accuracy and organization.

A. Preform analyses to estimate the number of computers Jim would need to manufacture and sell each year for his business to be financially successful:

1. List all the costs described and indicate whether each cost is (a) a relevant fixed cost, (b) a relevant variable cost, or (c) NOT relevant to Jim’s decision.

2. Calculate the contribution margin per unit and the contribution margin ratio.

3. Write down the total cost function for the computers and calculate the annual breakeven point in units and in revenues.

4. How many computers would Jim need to sell annually to earn $2,000 per month more than his salary?

B) Suppose Jim asked for your advice. Use the information you learned from the preceding analyses to write a memo to Jim with your recommendations.

PART A ANSWERED:

1.) Relevant Fixed Costs Monthly: Rent $1,200, Various Utility Bills $300, Own Salary $5,000, Base salary for salespeople $3,000 (1500*2), Total Fixed Cost per month $9,500, Relevant Variable Cost per unit: Cost of materials $750, Sales Commission $100, Total Variable Cost per unit $850 Not Relevant to the decision, Cost of trainning $1,000, Cost of Equipment $10,000, These are sunk cost, already incurred CONTRIBUTION MARGIN Sales Price per unit $1,500 Variable cost per unit $850 Contribution Margin per unit=1500-850 $650 Contribution Margin Ratio=650/1500= 0.433333 3 TOTAL COST FUNCTION: TC=850Q+9500 TC=Total Cost Q=Quantity Sold Breakeven Point in Units=Fixed Cost/Unit Contribution Margin Breakeven Point in Units=9500/650 14.61538 Rounded to whole number, Break even point in units 15 Break Even point in Revenue=$1500*15 $22,500 4 Net Earning =$2000 Number of Units to be sold=15+2000/650 =18

PLEASE JUST ANSWER PART B! (BOLDED)Thx you

10. Analysis of market share is a key to understanding the firm’s:

a. social and cultural environment.
b. technological environment.
c. demographic strengths.

d. competitive environment.

11. Donna has recently started a unique music store that not only sells musical instruments and music CDs from all over the world, but also features regular performances by renowned artists. The store also has a karaoke section where customers can try their hand at singing. Which of the following promotion tools does Donna have direct control over?

a. A consumer's review of the store on her personal blog
b. Donna's customers informing their relatives and friends about the store

c. An ad campaign managed by an advertising agency hired by the store

d. Word-of-mouth publicity through customers who visit the stores

12. Marketers can directly control most of the promotional tools they use. The tool that they are least likely to have control over is:
a. messages delivered by salespeople to the consumers.
b. publicity.

c. personal selling.
d. advertising messages and their placement in the media.

13. A defines the jobholder’s responsibilities.

a. job specification
b. job forecast
c. job description

d. job design

14. Many have no expectation that employers will be loyal to them, and they do not feel that they owe their companies strong loyalty in return.
a. older workers
b. women

c. younger workers
d. workers with disabilities

15. A major challenge human resource managers face with their Millennial generation employees is that:

a. many of these workers lack education and experience, leading to high training costs at a time when most American firms are under pressure to keep labor costs as low as possible.

b. they have high loyalty to their employer ,resulting in high labor turnover.

c. workers in this generation are more likely than other workers to demand flexible work schedules so that they can enjoy a better work-leisure balance.

d. this very large group is nearing retirement, raising the possibility that firms will lose many of their most talented and experienced employees.

16. Southwest Airlines' executive chairman states, "We value our employees first." Which of the following statements best explains this statement?

a. Southwest Airlines has only had to lay-off 5 percent of its workforce during the Great

Recession, in part due to its emphasis on employees.

b. The activity of HR is important in an organization but all profit-making activities should be prioritized before employee satisfaction and employee retirement.

c. A company’s people are its life­blood. They are the face and hands of the enterprise. To that end, Southwest Airlines values its employees as its most valuable asset.

southwest Airlines exclusively focuses on attaining the profit maximization goal as a way to retain employees.

17. Companies that get the most from their people often consider investment.

a. top management
b. trade unions
c. crowdsourcing efforts

d. human resources

18. The Yearly Company’s balance sheet showed $18,000,000 in Retained Earning and $5,000,000 in Net Income. The company has issued 2,000,000 shares of common stock. The EPS amount is:

a. $9.00

c. $6.50
b. $2.50

d. $11.50

e. none of these

19. A balance sheet identifies cash flows from three types of activities: production, sales, and promotional activities.
a. True
b. False

20. Stockholders would most likely use accounting information provided by their firm to:
a. make capital budgeting decisions.
b. gauge whether the firm is generating a satisfactory return on stockholders' investment. c. determine whether the firm can repay them for the orders it places.
d. obtain information needed to fill out their individual tax returns.
e. none of the above

Bill Grignard was well for the first 10 months of his life. In the next year he had pneumonia once, several episodes of otitis media (inflammation of middle ear) and on once occasion developed erysipelas (skin streptococcal infection) on his right cheek. These infections were all treated successfully with antibiotics but seemed to his mother, a nurse, that he was constantly on antibiotics.

His mother had two brothers who all died, 30 years prior to Bill’s birth, from pneumonia in their second year of life, before antibiotics were available. She also had two sisters who were well; one had a healthy son and daughter and the other a healthy daughter.

Bill was a bright and active child who gained weight, grew and developed normally but he continued to have repeated infections of the ears and sinuses and twice again pneumonia. At 2 years 3 months his local pediatrician tested his serum immunoglobulin is. He found 80 mg/ dl IgG ( normal is 600-1500 mg/dl), no IgA (normal is 50-125 mg/dl) and only 10 mg/dl IgM (normal is 75-150 mg/dl).

Bill was started on monthly intramuscular injections of gamma globulin; his serum IgG level was maintained at 200 mg/dl. He started school at age 5 years and performed well despite prolonged absences because of recurrent pneumonia and other infections.

At age 9 he was referred to the Children’s Hospital because of atelectasis (partial lung collapse) and a chronic cough. On physical examination he was found to be a well-developed alert boy. He weighed 33.5 kg and was 146 cm tall (normal). The doctor noted he had no visible tonsils (he never had a tonsillectomy). With a stethoscope the doctor also heard rales (moist crackles) at both lung bases.

Further family history revealed that Bill had one younger sibling, John, a 7 year old brother who also had contracted pneumonia on 3 occasions. John had a serum IgG of 150 mg/dl.

Laboratory studies at the time of Bill/s visit to the Children’s Hosptial gave a white blood cell count of 5100/ ul (normal) of which 45% were neutrophils (normal), 43% were lymphocytes (normal), 10% were monocytes (elevated) and 2% were eosinophils (normal).

Flow cytometry showed of lymphocytes, 85% were T cells ( 55% CD4, 29% CD8), however there was a complete lack of B cells (CD19+, normal 12%). Serum IgG remained low at 155 mg/dl and serum IgA and IgM were still undetectable.

3. Read the description paragraph below and identify/diagnose what the patient is experiencing (ie disease or immunological problem).

2. Once you identify the problem, think over what we have covered in class and describe what the outcomes of the disease or immunological problem is in the context of the immune system and where might there be deficiencies or problems with the normal immune system function.

3. Lastly, describe how the immune system would be working in a healthy individual. This could include a brief description of how the specific part of the immune system identified as being deficient normally works in a stepwise pathway that we cover in class. You can either use words to describe these pathways or you can draw pictures well annotated with high detail and include them as pictures with your word document you submit.

Meet the Marcottes, Martin and Luz Marcotte that is. Martin is a successful graphics designer who is 38 years old, while Luz is a counseling psychologist, 35 years old and is working at a State facility in Kansas. They have a 10 year old daughter Paloma, who is in the fourth grade, and a three year old son Joel, who goes to the nearby daycare center. The Marcottes will be facing numerous challenges as the financial planning topics progress, which will require you to practice sound financial decision making, and in other instances where there is a sufficient time horizon, some prudent financial planning. Currently, Luz is finishing her doctoral program in Psychology, while maintaining a parttime status at the Habilitation Center where she works. The Marcottes own a home, two cars, have approximately $12,000 saved up in various savings and investment accounts, and own some assets around the house. They are also vested in their 401ks that they maintain at their respective places of employment. Presently, there are some financial issues facing this couple, they have not addressed. Although, they both have jobs where they make decent salaries, they have not really thought about their children’s educational needs. Inflation in the cost of college education is a reality for most parents, which has to be kept in mind when planning for the future. Moreover, Martin’s mom who is in her late seventies, has been facing declining health, and will not be able to live by herself, like she has been, for very long. Luz, who is originally from Peru, also sends regular amounts of money to her family, but her folks are also aging and may need some financial assistance in the future. Lastly, since they lead a fairly hectic lifestyle, they have not given much thought to their own retirements, or the possibility of how they would handle a layoff from work. Referring back to the Marcottes, consider the situation where Martin has been told by his boss that due to lower sales the company is anticipating layoffs. After getting the word Martin came home and talked to his wife and the kids. They decided to make up a list of 3 things.(1) bills they have to pay each month (2) areas where they can reduce the spending and (3) sources of funds to help them pay current expenses. Each family member has several ideas on how to cope with the impending financial situation. Currently the Marcottes monthly take-home pay is $3165. Each month, the money broadly goes for the following items:

Rent $880 Utilities $180 Food $560 Auto Expenses $480 Clothing $300 Insurance $280 Savings $250 Personal Items $225

After Martin is laid off, the monthly income will drop to $1550 from his wife’s income and his unemployment benefits. The Marcottes have $12,000 in various savings and investments accounts for the children’s education. Besides this they have about $24,000 in their retirement accounts and investments.

1. What items might the Marcottes consider reducing to cope with their financial difficulties?

2. Show their monthly budget detail prior to Martin’s layoff, and the monthly budget after the layoff, with your suggested adjustments from question 1 above. How should the Marcottes use their savings and retirement funds during this financial crisis? What additional sources of funds might be available to them during the period of unemployment?

3. What other current and future financial actions would you recommend to the Marcottes? Looking for creative suggestions here. Saying things like “save more money” or “spend less” are meaningless in response. Be specific.

The goal of this project is to explore the topic of the time value of money. The project requires you to work in Excel with the provided spreadsheet. Be sure to fill in the yellow boxes in the Excel file for full credit. Make sure you reference cells in Excel where necessary and do not simply type in answers. Also, type up a one-page report in Word with a separate section for the introduction (description, variables, context, etc.), findings (results, plots, variable relationships, etc.), and conclusion (summary, lessons, etc.). Failure to follow all instructions will result in a deduction of points.

Time Value of Money

Part 1: Future Value

In this part, calculate the future values. Use the Excel FV function to compute the future values.

1. You have just made a $4,000 contribution to your individual retirement account. Assuming you earn an annual rate of return of 5 percent and make no additional contributions, what will your account be worth when you retire in 30 years? (7 Points)

2. Calculate the future values in the table below using the FV Excel function. (7 Points)

Part 2: Present Value

In this part, calculate the present values. Use the Excel PV function to compute the present values.

3. You are committed to owning a $200,000 home. If you believe your mutual fund can achieve an annual return of 10 percent, and you want to buy the home in 15 years, how much must you invest today? (7 Points)

4. Calculate the present values in the table below using the PV Excel function. (7 Points)

Part 3: Interest Rate

In this part, calculate the interest rates. Use the Excel Rate function to compute the interest rates.

5. In 2018, one of the first copper pennies struck at the Philadelphia mint in 1793 was sold for $300,000. What was the rate of return on this investment? (7 Points)

6. Calculate the interest rates in the table below using the Excel Rate function. (7 Points)

Part 4: Number of Periods

In this part, calculate the number of periods. Use the Excel Nper function to compute the number of periods.

7. You expect to receive $20,000 at graduation. You plan on investing it at 6 percent until you have $130,000. How long will you wait from now? (7 Points)

8. Calculate the number of periods in the table below using the Excel Nper function. (7 Points)

Part 5: Relation between Future Value and Number of Periods

In this part, you need to examine the relation between the future value and the number of periods.  

1. For a present value of $5,000, create a table that shows the FV at 0%, 5%, and 10% for 0, 2, 4, 6, 8, and 10 years. (7 Points)

10. In a single graph (scatter plot with straight lines and markers), graph the table above with years on the horizontal axis and FV on the vertical axis for each interest rate and be sure to label the y-axis, x-axis, chart title, and legend. (7 Points)

1. Create a struct MenuItem containing fields for name (a string) and price (a float) of a menu item for a diner. Create a ReadItem() function that takes an istream and a MenuItem (both by reference) and prompts the user for the fields of the MenuItem, loading the values into the struct's fields. Create a PrintItem() function that takes an output stream (by reference) and a MenuItem (by value) and prints the MenuItem fields to the stream in a reasonable one-line format. Create a main() that declares a MenuItem struct, calls ReadItem(), then calls PrintItem(). Test with a few different items.
2. Make another program modified to include an array of 10 MenuItem structs. Modify ReadItem() to not prompt for, but instead just read the data for a struct field-by-field, and call it once for each MenuItem. Then call PrintItem() for each struct to create a menu. Use files, opened and closed in main(), for all input and output. Create a test file with the 10 items and prices, and test with it. Send me the test file and the output file.
3. Make another program modified so that after it reads the MenuItems from the file (as per part 2), it prints a menu (on the screen) for the user, collects an order, and prints a diner check. You should not have to modify PrintItem(). Write a function that takes the array of MenuItems and an array of ints, prints the menu (number the items 1 through 10), and then loops, prompting the user to select items until they have either selected all 10 items on the menu or entered -1 to indicate they are through ordering. Don't allow the user to select an item that isn't on the menu or an item they have already selected. You may assume the user will enter at least one valid selection. Keep the user's selections in the array of integers. Return the number of entries the user made. Then print a diner check with the items the user selected and the total price of the meal. Use another function to print the check, passing the two arrays, the number of items selected, and the output stream to the function. Use the PrintItem() function to print the items, both on the check and on the menu. You may assume no tax. Print all output to the screen.

Hints:

If you use an istream & for an input stream parameter, you may pass either cin or an input file handle to a function. Similarly, if you use an ostream & for an output stream parameter, you may pass in either cout or an output file handle to the function. The only restriction is that you may only use operations that would work on cin or cout in the function. For example, you may not open() or close()inside the function.

You may use either C-strings or C++ string objects for the menu item names. Use multi-word item names like "bacon cheeseburger" not just "cheeseburger". To read a C-string containing white space characters, use

in.getline( data, MAX, '\n' );

where in is either cin or an input file handle (or a parameter of istream & type), data is an array of char at least MAX+1 in length, MAX is the maximum number of characters to read from the input stream, and '\n' is the character at which to stop reading. To read a C++ string object containing white space characters, use

getline( in, data );

where in is either cin or an input file handle (or a parameter of istream & type) and data is a C++ string object. Here, you don't have to worry about the maximum length of the string being read.

On Windows, after extracting a number, you will need to call in.ignore(); to get rid of the newline before you try another getline(). Do this inside the ReadItem() function before it returns. To number the items in the third exercise, print the number before calling PrintItem(). PrintItem() should not end the line itself. You might not need to do this on Mac or Linux systems.

This is for introduction to C++ please don't make code complex. add comments for methods.

Linux Operation

For the following exercises, ensure the following regarding the student1 and student2 accounts:

• The home directories are /home/student1 and /home/student2
• The student accounts are in the students group
• The umask for the student1 and student2 accounts is: 022, (should be by default)
• The “student” account home directories have 755 permissions.
• Execute steps in the “Lab 2 setup supplement” document on D2L to get the above set up.

Also note that, the term “home directory” below, if not specified in detail, refers to the home directory of the current user (e.g. /home/student1 for the student1 account). This does not specify just the “/home” directory.

*** On the lab answers – be sure you use the form fields, so that your answers are show in red ***

SECTION 1 – Absolute/Relative Paths, Files and Directories:

1. Log into the student1 account. Enter the command to tell you what your current directory is:

     .

Now cd to the /tmp directory. Enter two commands, which will change your directory to the home directory for student1:

      and      

Verify these two commands work by displaying your current directory after each one is run.

2. Ensure you are in your home directory for student1. List the contents of the /tmp directory using an absolute path name:      .

List the contents of the /tmp directory using a relative path name:      .

After listing the contents of a directory, does your present working directory change?      .

What command changes your present working directory?      .

3. Ensure you are in your home directory for student1. Change your current directory to the root (/) directory. What command did you use:      .
4. Enter the cd ~ command. What directory are you now in?         .

Explain what “~” represents:      .

5. Ensure you are in your home directory for student1. Create a file called labfile1 with the touch command in the /tmp directory using a relative path name. What command did you use:

     .

Create another file called labfile2 with the touch command in the /tmp directory using an absolute path name. What command did you use:        .

6. What is the file size of files created with the touch command?        .

Now touch one of these files again. What, if anything is different in the file’s characteristics?        .

7. Ensure you are in your home directory for student1. Using the echo command with output redirection, and an absolute path, add 10 lines to the /tmp/labfile1 file. Make each line just one word - line1, line2, through line10. What is the new file size of the /tmp/labfile1 file?      .

In what storage units are files displayed in unix?        .

Ensure you are in your home directory for student1. Use the tail command and a relative path to display the last 5 lines of the /etc/passwd file. What command did you use:        .

Ensure you are in your home directory for student1. Use the head command and an absolute path to display the first 5 lines of the /etc/group file. What command did you use:        .

8. Ensure you are in your home directory for student1. Create a new subdirectory in your home directory called subdir1. What command did you use:        .

Change your current directory to the subdir1 directory using a relative pathname. What command did you use:      .

Change back to your home directory for student1. Create a file called labfile3 in this subdir1 directory using the touch command with a relative pathname. What command did you use:

     .

9. Ensure you are in your home directory for student1. Execute the following commands: ls –al subdir1 and ls –ald subdir1. What is the difference between these 2 commands?

     .