Financial Statement Analysis
Financial Statement Analysis Final Paper Financial statements
[WLOs: 1, 2, 3, 4] [CLOs: 1, 2, 3, 4, 5, 6]
Prior to completing work on your paper, review the following:
Chapter 10 in the textbook
Steps to Avoiding Plagiarism
Form 10-K: The Coca-Cola Company (Financial information, pp. 72–83)
Form 10-K/A: Keurig Dr Pepper Inc. (Dr. Pepper financial information, pp. 59–70)
2016 PepsiCo Annual Report (Financial information, pp. 95–124)
Part 1
Complete the Steps to Avoiding Plagiarism module from the Ashford Writing Center. This module is designed to help you understand the different types of plagiarism and help you properly use and cite sources.
In the module, you must
Complete the four activities.
Request email confirmation of completion for every activity to be sent to your email address.
At the end of each activity, you will be asked if you need confirmation of completion. Request a confirmation of completion email for each activity to be sent to your student email address. Do not send the confirmation to your instructor’s email address.
Take a screenshot of each email you receive (there will be four) that shows the time and date stamp and paste them in your final paper as a page at the end of the document. This is verification that you have completed the Steps to Avoiding Plagiarism module. If you need instructions, review the many options on this website, Take-a-Screenshot.org.
Click on the Need Proof of Completion? button at the end of each activity. Fill out the next screen to receive the confirmation email.
Well Done.png
sample screenshot-1.png
Below is a sample screenshot that includes the time and date.
Confirmation.png
Retain your confirmation email screenshots to use in ACC206, ACC305, ACC306, and ACC307 or you will need to take the plagiarism module again for each class.
Part 2
Write a five- to seven-page comparative financial statement analysis of the three companies listed below, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis, you will discuss the financial health of these companies with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: Company Overview, Comparison of Accounting Methods, Ratio Analysis, Final Recommendation, Conclusions. You will also submit an appendix as a separate document. Additional research may be necessary to provide company background information, or to support your analysis and recommendations. Your paper needs to include a minimum of two scholarly, peer-reviewed, and/or credible resources in addition to the textbook as references.
Download the Form 10-K for each company.
Form 10-K: The Coca-Cola Company. Financial statements and notes start on page 60.
Accounts receivable, page 66
Inventories, page 66
Depreciation, page 66
Goodwill, page 66
Form 10-K/A: Keurig Dr Pepper Inc. Financial Statements and notes start on page 53.
Click on Investors
Click on Download 2016 Form 10K
Open with Adobe Acrobat Reader
Accounts receivable, page 59
Inventories, page 70
Depreciation, page 60
Goodwill, page 61
2017 PepsiCo annual report. Financial statements and notes start on page 79
Accounts receivable, page 87, Note 2
Inventories, page 124, Note 13
Depreciation, page 96, Note 4
Goodwill, page 96, Note 4
Here is a breakdown of the sections within the body of the assignment (Use paragraph headings to indicate each section):
Company Overview
Provide a brief overview of the three companies (at least two pages). What industry is it in? What are its main products or services? Who are its competitors? Where is the company located?
Ratio Analysis
Calculate the current ratio, quick ratio, gross profit percentage, inventory turnover, accounts receivable turnover and asset turnover ratios for all three companies for the current year.
Note: Cash includes cash and cash equivalents and short term investments.
Explain how the ratio is calculated and discuss and interpret the ratios that you calculated.
Discuss potential liquidity issues based on your calculations of the current and quick ratios.
Are there any factors that could be erroneously influencing the results of the ratios?
Discuss liquidity issues of the three companies.
Comparison of Accounting Methods
In your paper, ascertain from the notes of the financial statements the following:
Explain the difference between the allowance method and the direct write off method for accounts receivable. Document the method used for each of the three companies.
Explain the difference between the straight-line, double declining balance and the unit of production depreciation methods. Document the method used for each of the three companies.
Explain the difference between LIFO and FIFO and document the method used for each of the three companies.
Explain the different categories of intangible assets and document the method used for each of the three companies.
Recommendation
Based on your analysis, would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company, as long as you provide support for your position.
Conclusion
Include an appendix in a separate document. The appendix must include screenshots of the financial statements and information obtained for the receivables, intangible assets, depreciation, and inventory. You can get help with creating an appendix in APA format by using the Ashford Writing Center’s guide, Tables, Images, & Appendices.
The Financial Statement Analysis Final Paper
Must be five to seven double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center’s APA Style
Must include a separate title page with the following:
Title of paper
Student’s name
Course name and number
Instructor’s name
Date submitted
For further assistance with the formatting and the title page, refer to APA Formatting for Word 2013.
Must utilize academic voice. See the Academic Voice resource for additional guidance.
Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
For assistance on writing Introductions & Conclusions as well as Writing a Thesis Statement, refer to the Ashford Writing Center resources.
Must use at least two scholarly/peer-reviewed and/or credible resources in addition to the course text.
The Scholarly, Peer-Reviewed, and Other Credible Sources table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
Must document any information used from sources in APA style as outlined in the Ashford Writing Center’s Citing Within Your Paper
Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center. See the Formatting Your References List resource in the Ashford Writing Center for specifications.
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.
Answer preview to Financial Statement Analysis
APA
2535 words