Description

BUS 406 Group Project

This assignment will involve being assigned a publicly held corporation by the instructor. The objectives of the assignment are to provide an opportunity for the students to analyze a corporation's annual report and to evaluate the financial condition and operating performance of the corporation through the use of financial ratios and other information    

Annual reports of the selected corporation from the most recent fiscal year period will need to be obtained. Based on the financial statements and other financial information contained therein, the project team will obtain the following general information and calculate the following financial ratios for the most recent fiscal year period:

 General Information

1.     Name of the Corporations

2.     Principal Line of Business

3.     Fiscal Years for which annual reports are used

4.     Stock trading symbol of the corporation

5.     Name of Audit Firm

Financial Ratios

1.     Working Capital

2.     Current Ratio

3.     Quick Ratio

4.     Number of days’ sales in receivables

5.     Number of days’ sales in inventory

6.     Ratio of liabilities to stockholders’ equity

7.     Number of times interest charges earned

8.     Ratio of net sales to assets

9.     Rate earned on total assets

10.                        Rate earned on stockholders’ equity

11.                        Rate earned on common stockholders’ equity

12.                        Earnings per share on common stock

13.                        Price-earnings ratio

14.                        Dividends per share

15.                        Dividend yield

The report should include the following:

1.      Answers to the general information items.

2.     Copy of the Annual Reports and any financial info used to calculate the financial ratios.

3.     Calculations of the financial ratios for the corporation covering the most recent fiscal year period.

4.     Identify the specific financial ratios that support the team's recommendation of whether the class should purchase the corporation’s common stock as an investment.

5.     The team should focus their comments on the actual results of the ratio calculations, the purpose of the ratio, and why such ratio clearly supports the recommendation.

6.     A summary of which group members were responsible for which part and all work that was performed.