ch 3 ICA Blank Template (1)
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Feb 20, 2024
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FIN3073
Chapter 3 In-Class Activity 1.
Review the annual report and note any events that would impact the financial strength/weakness of the company over the past 3-4 years. 2.
Review the firm’s Income Statement. Note any unusual changes over time and be able to
explain any large jumps in income/expenses. 3.
Review the firm’s Balance Sheet. Explain any unusual account changes over time, most notably, comment on any significantly DECREASING assets or INCREASING liabilities. 4.
Review the Operating section of the firm’s Cash Flow Statement. Explain any unusual sources or uses of cash through operating activities.
5.
Review the Investing section of the firm’s Cash Flow Statement. Explain any unusual sources or uses of cash through investing activities.
6.
Review the Financing section of the firm’s Cash Flow Statement. Explain any unusual sources or uses of cash through financing activities.
7.
Using the firm’s Income Statement, find the after-tax operating income
for the most recent two years.
8.
Using the firm’s Balance Sheet, find the net operating working capital
for the two most recent years.
9.
Using the financial statements, calculate the firm’s free cash flow
for the most recent year. 10. Using the financial statements, calculate the market value added
for the most recent year.
11. Using the financial statements, calculate the economic value added
for the most recent year. Assume that the WACC for the firm is 10% and that the total invested capital is the
sum of the long-term debt, equity, and capital leases (if any).
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