Special Project Template ACC 2302 As of Sept 2023

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University of Houston, Downtown *

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2302

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Accounting

Date

Jan 9, 2024

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docx

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Enclosed you will find the project for class, in which you will learn about analysis of financial statements that a manager might perform or utilize. Review Chapter 13 of the textbook as a resource for this assignment. Special Project – ACC 2302 Fall 2023 Phase 1 & 2 Due Date: Phase 1 - 10/1/23 Phase 2 - 11/13/23
Phase 1 Due October 01, 2023 Worth 40% of the Special Project Grade Using the Excel template provided, prepare a horizontal income statement and balance sheet for Valero for the years 2019 - 2020. See Exhibits 13.1 and 13.2 for an example. (Ten % of grade) Using the Excel template provided, prepare a common size income statement and balance sheet for the years 2018-2019 for both Valero. (Ten % of Grade) o The income statement common size factor, i.e., the 100% base amount, shall be based upon sales. See Exhibit 13.9 for an example. o The balance sheet common size factor shall be based upon total assets. See Exhibit 13.8 of the textbook for an example. Using the Excel template provided, complete the ratio analysis for each item requested. (20% of grade). Note: Upon completion of the assignment, a survey will be sent to each group regarding the participation of each member of the group. Lack of participation by a group member will affect grades.
Phase 2 – Due 11/13/2023 Step 1 – Solvency & Working Capital Management Imagine you are reporting to management on the performance of these respective companies. Using the financials statements and the ratios you just calculated, please prepare your comments and remarks in this Word document to the following questions with regards to the period 2019 - 2020. Before you commence, consider doing the following, which is optional: Go to the investor relations page of both Valero and PBF Energy and listen to fifteen to thirty minutes of one of the companies latest investor calls. Locate on their investor relations page any of the presentations recently made by Valero and PBF at investor conferences and and review one recent presentation by each company. Once you have completed the above Solvency Ratios (20%) 1) Based upon your analysis of the solvency measures, how would compare the ability of Valero and PBF to withstand a significant credit event such as a recession or other event? (50 to 75 words) 2) Has Valero and PBF improved, declined or remained stable with regards to solvency during the period 2019 through -2020? (50 to 75 words) 3) Search the internet or financial statements and define the interest rate Valero and PBF pay on their debt. (25 to 50 words) 4) Based upon your analysis, compare and contrast Valero and PBF’s performance with regard to working capital management (inventory, accounts receivable, accounts payable and cash conversion cycle) (50-75 words)
5) Provide any other observations you think are meaningful with regards to solvency measures of these two companies. . (25 to 75 words) Step 2 - Performance Ratios (20%) 1) Compare and comment upon the relative performance on each of the Performance Ratios for Valero over the period 2019 – 20. Did Valero’s performance improve, decline or remain stable? What support would you offer to support your position? (25 – 75 words) 2) Compare and comment upon the relative performance on each of the Performance Ratios for PBF over the period 2019-2020. Did PBF performance improve, decline or remain stable? What support would you offer to support your position? (25 – 75 words) 3) Compare and comment over the relative performance Valero versus PBF for the period 2019-2020. Which company do you think performed better? What support would you offer to support your position? (25 -75 words) 4) What happened in 2020 that may have resulted in steep performance declines You may want to listen to the transcript of an investor call during these respective periods. Investor call transcripts are available on the website of each respective company on the Investor Relations page. (25-75words) 5) Provide any other comments or observations that you think are interesting or meaningful with regard the performance ratios of these two companies . (25-75 words)
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