1. Financial statement analysis project | Cocacola | Argosy University
MBA 560 Financial Statement Analysis Project As a group of 3-5, you are to act as a
financial advisor to a client interested in investing in a specific industry. Your group of 3-5
will research 2 separate companies in the same industry and provide a recommendation to
your client which company, if any, your team should invest in. Some possible industries
include: Industry Companies (American Companies or foreign companies with U.S. Division)
Airline American/Southwest Airlines/United Fast Food Wendy’s/McDonalds Search Engine
Google/Yahoo Pharmaceutical Merck/Pfizer/Bristol Myers Squibb Auto Ford/GM Retail
Gap/Guess/Abercrombie Beverage Coca Cola/Pepsi Phone Apple/Samsung Publishing
Pearson/McGraw-Hill Others? Please confirm with your teaching faculty Your team may
select other companies or another industry. Each team in the class must select a different
company. Companies must be publicly traded companies. PART A: Write a page instruction
of each company background in APA format. PART B: Obtain Financial Statements Obtain 3
years of financial statements (just the Balance Sheet and Income Statement) for your
company from SEC.GOV. 3 BALANCE SHEETS AND 3 INCOME STATEMENTS will be
submitted. One set per company. PART C: Enter data into FSAP (Financial Statement
Analysis Package) Financial Statement Analysis Package (FSAP): Version 7.0. 2, Financial
Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 7th.
Student can download from the link below:
www.cengage.com/resource_uploads/downloads/0324789416_247806.xls Enter the
Balance Sheet and Income Statement amounts for 3 years into the Financial Statement
Analysis Package Excel file (just the Balance Sheet and Income Statement information, not
the Statement of Cash Flows). Make sure your balance sheet BALANCES!!!! Make sure your
Net Income matches your Net Income on the Income Statement. Email one FSAP per
company. PART D: Company Analysis 3 Focus more on their position within the industry,
recent developments, fluctuation in stock prices relative to the market/industry, and other
items of significance that would impact your investment decision. Legal issues facing the
company. New markets and new products. (4 pages – APA format). Submit 1 paper per
team. PART F: Industry Analysis Summarize the economic outlook for your industry. Look
at recent market activity, recent indicators impacting your industry. Address recent change
in stock prices. Obtain industry averages for your ratio and common size analysis. Identify
laws/regulations impacting your industry. Identify market trends and geo/political events
impacting your industry. Identify Micro/Macro economic conditions impacting your
industry. DO NOTE WRITE ABOUT YOUR INDIVIDUAL COMPANIES. (2 pages – APA format).
2. Submit 1 paper per industry. Data sources: Standard and Poor’s Stock Reports or other
Industry Surveys, Mergent’s Industry Review. Finance.yahoo.com, moneycentral,msn.com,
hoovers.com, and other financial websites. Examine recommendations of other investment
websites (buy/sell/hold). SECTION B: FINAL PAPER OUTLINE (Merged all sections into a
single APA paper) A. Write a page instruction of each company background in APA format
(1 page in APA format). B. Include Company Analysis (address prior comments) C. Include
Industry Analysis (address prior comments) D. Include FSAP summary – Create tables
summarizing the analysis tab of your FSAP. Make it look professional. (You are not required
to include the whole report in your final research project.) E. Write a summary of the
significant findings from the financial statement analysis. (4 pages APA format). Address
significant (Focus on the 2-4 items under each) Ratios, Horizontal Analysis, and Common
and every line of vertical and horizontal analysis, just what you feel is important. F.
Conclusion: Based on your findings and after reading the other papers in your group, which
company, if any, would you invest in? Include specific support for your decision based on
your findings in the analysis. Also include support (for or against) investing in the industry
you chose. 4 GRADING DO NOT COPY, DO NOT PLAGIARIZE, CITE APPROPRIATELY!!
