Financial Statement Analysis Essay

If you work this problem as a group assignment, each group member should be prepared to

1) GENUINE MOTOR PRODUCTS Revised Pro forma Income Statement For 2007 Sales (1,000,000 units @ $30 per unit) Fixed costs Total variable costs (1,000,000 units @ $18.80 per unit) Operating Income (EBIT) Interest (10.75% x $12,000,000) Earnings before taxes Taxes (35%) Earnings after taxes Shares Earnings per share * Fixed costs include $2,800,000 in depreciation $ 30,000,000 5,800,000 18,800,000 5,400,000 1,290,000 4,110,000 1,438,500 2,671,500 2,320,000 1.15

SUMMARY OF STUDY OBJECTIVES 1Identify the sections of a classified balance sheet. In a classified balance sheet, companies classify assets as current assets; long-term investments; property, plant, and equipment; and intangibles. They classify liabilities as either current or long-term. A stockholders' equity section shows common stock and retained earnings. 2Identify and compute ratios for analyzing a company's profitability. Profitability ratios, such as earnings per share (EPS), measure aspects of the operating success of a company for a given period of time. 3Explain the relationship between a retained earnings statement

Learning Objective: 04-03 Present an income statement with earnings per share, statement of stockholders equity, balance sheet, and statement of cash flows.

The company selected for our financial analysis project is Chipotle Mexican Grill. Chipotle (for short) is a company that is a major player in the fast food and restaurant industry. The name “chipotle” is derived from the Mexican Spanish name for a smoked, dried Jalapeno pepper. The restaurant sells large burritos and bowls in an assembly line production system where all the condiments are arranged and all the customer has to do is request what they want their burrito to consist of. This in turn lends itself to an air of individuality (creating multiple combinations and choices for the clientele). The Corporation trades under the ticker symbol CMG on the New York Stock Exchange. The most recent Fiscal Year End

The following observation will describe the decisions made by a financial analyst who is working for the capital budget department at Caledonia Products. The organization has asked Team B to evaluate the potential risk involved in an upcoming transaction and identify several options in how to proceed. Because this is the team’s first assignments dealing with risk analyzes the team has been ask to further explain the details. The organization analysis will focus on free cash flows, projection of cash flows, projects initial outlay, cash flow diagram, net present value, internal rate of return, and if the

In order to understand and conduct a complete financial analysis of either organization, or any company for that matter, that desires to increase aspects of business, an analysis becomes fundamental when defining the company’s current standings in the market. This can also be a great way in order to discover new ways for expansion of productivity and development within the organization. Throughout the execution of a financial analysis of any business, it is imperative to understand the background of the company and the products they produce and sell. By understanding these

Note to Instructors: When assigning this case, inform the students that the firm’s stock price has recently dropped from $7 per share to $5.50 per share. Case objective: The objective of this case is to cover financial statement analysis and cash flow analysis, with a particular emphasis on liquidity and net working capital. Student Preparation time: Approximately 2 hours. Answers to questions: 1. Why has the stock price fallen despite the fact that the net income has increased? Although Signal has made a net profit that is higher than that of the previous year, its net profit margin is lower (6.98% vs 7.43%). Most of this decrease has been caused by the significant

Sizeable Cash Flow 9% 3 0.27 6. Member Of ‘Seven Sister’ 12% 3 0.36 Internal weakness 1. Decreasing Market Capture 8% 1 0.08 2. Comparatively Low ROE

Google and Yahoo are two companies that compete in the Internet Information Provider Industry. They are perhaps two of the best known companies in that area. Because they both belong to the same industry, they are very similar in some aspects, but they also differ in some others. More specifically, they differ somewhat in their financial aspects. In order to provide a better understanding of their financial characteristics, different types of financial statement analyses are used. A horizontal analysis is used to evaluate a company's progress from period to period, a vertical analysis is used to judge against competitors, and financial ratios are used to assess a company's financial status and judge them against their main competitors as well as the average for their industry. Without doubt, these are very helpful tools that can be used by managers, auditors, investors and creditors who have an interest in evaluating the financial aspects of a company (Nobles, Mattison, and Matsumura 1010).

The purpose of this assignment is to increase your understanding of the information contained in a firm’s financial statements and of the relationship between the statements. As you study financial accounting, we will focus on using financial information in a meaningful way, to understand the firm’s past performance and project its future performance.

Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment.  The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:

Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation

Normalized Historical Balance Sheets Summary Historical Statements of Cash Flows Normalized Earnings and Net Cash Flow Summary Normalized Interim Financial Statements 9  9  9  10  10  11  11  12  13  14  ANALYSIS OF HISTORIC FINANCIAL STATEMENTS Business Common-Size Financial Statements Business vs. Industry Common-Size Financial Statements Business Financial Ratio Analysis Business vs. Industry Financial Ratio Comparison 16   16  17  19  21  VALUATION OF SAMPLE INDUSTRIES, INC. Overview of Valuation

Furthermore, I have also illustrated the trends of the last four years via graphs and a brief explanation of the figures are also given below the each graph. Moreover, I have also done the cash flow analysis that shows the current liquidity condition of the company and it also indicates the main cash sources. Besides this, I have also focused on information which is not related to finance that shows the code of conduct, economic responsibilities as well as social responsibility of the company.