Financial Management I
The specific course learning outcomes associated with this
assignment are:
• Analyze financial statements using financial ratios.
• Analyze and evaluate cash flows over time.
• Use technology and information resources to research
issues in financial management.
• Write clearly and concisely about financial management
using proper writing mechanics.
This project requires that you conduct a financial analysis
of two, comparable organizations. You may select any organizations that produce
publicly available financial statements employing IFRS or U.S. GAAP (both
companies must follow the same GAAP). Let your professor know which two
companies you plan to study before the end of Week 2, as your selection must be
approved. The professor reserves the right to limit the number of students
comparing the same two organizations.
Assignment:
1. Carefully review the annual reports for both
organizations. Comment on what approach each company has taken in reporting to
its shareholders. (This requirement is purposely broad to give you the freedom
to talk about anything that comes under the broad title of “reporting to
shareholders”).
2. Prepare a ratio analysis for both companies including a
trend analysis for three years. Comment on the significance of the ratios for
each company (do they indicate that things are all right, do they suggest that
problems exist, or is it likely that problems will occur in the future?).
Comment specifically on the similarities and differences among the ratios
calculated for both companies and comparison to any benchmark.
3. Prepare an analysis of the cash flow statements for both
companies.
4. List and discuss the importance of the two most
significant accounting policies adopted by the two organizations (you should
select the same two policies for both organizations).
Explain the options selected by both companies and comment
on any differences that you see. Explain what other policies the organizations
could have selected and state why you think they selected one policy over
another.
5. Provide the URL’s for each company’s Annual Report.
Your assignment should adhere to these guidelines:
• Write in a logical, well-organized conventional business
style. Use Times New Roman font size 12 or similar, double space, and leave
ample white space per page.
• All references must follow JWMI style guide and works must
be cited appropriately.
Check with your professor for any additional instructions on
citations.
• On the first page or in a header, include the title of the
assignment, the student’s name, the professor’s name, the course title, and the
date. Reference pages are not included in the assignment page length.
• Faculty members have discretion to penalize for
assignments that do not follow these guidelines. Check with your individual
professor if you feel the assignment requires a much longer or shorter
treatment than recommended.
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