Solved: BAT4M Financial Analysis Project
Summative Overview Your summative involves the analysis of a public Canadian corporation with shares trading on one of the Canadian stock exchanges. You are required to complete an in depth, written report on a corporation of your choice. Manufacturing, merchandising and service companies are suggested. Bank, trust, and insurance companies should be avoided as their accounting policies are beyond the scope of this course. Research It is expected that you will use a number of resources to investigate your company including the internet. Annual reports, investor information, product/service information are among the many areas often addressed on corporate websites. Once a company is chosen, its website should be reviewed in detail in order to obtain an overview of the company and its financial situation. In addition to the company website information, you are required to obtain a hard copy of the company's latest annual report. In some cases, this can be requested through the website and, in other cases, you may have to contact the company directly. You may want to consider obtaining copies of the last three annual reports for comparative analysis. Your annual reports must be submitted with the written report. Additional sources of information for this project include (but should not be limited to) the following:- Additional information provided by the company
- Newspaper/periodical articles (i.e. Canadian Business and Macleans)
- Dun and Bradstreet Industry Average Ratios
- Accounting texts (Corporate Accounting and Financial/ratio Analysis Sections)
- Government or industry publications
- An Introduction
- The name of the company and the location of its head office;
- The name of the chairman of the board of directors, the chief executive offices, chief operating officer, president and two directors;
- A brief description of the organizational structure of the company (i.e. its divisions, subsidiaries, etc) and their locations;
- The name of the firm which audited the financial statement and a brief summary, in your own words, of the accounting firm's opinion;
- A brief summary of the significant account policies followed by the company (i.e. depreciation method, inventory valuation etc.);
- A brief history of the company
- A brief summary of the corporate objectives and mission statement.
- A description of the products sold and/or services performed.
- Complete a comparative balance sheet and income statement comparing the results of the current and previous year using the Horizontal/Trend analysis technique as well as the Vertical Analysis Technique
- The comparative statements should be setup the same way as any other financial statement you would complete. Briefly discuss your assessment of these findings/results.
- See pages 730-761
- Current (or Working Capital) ratio,
- Quick Ratio,
- Collection Period,
- Inventory Turnover,
- Debt ratio,
- Equity Ratio,
- Times Interest Earned Ratio,
- Rate of Return on Net Sales, and
- Rate of Return on Owner's Equity.