The project is expected to consist of comprehensive and relevant
responses to all the requirements of the Case Analysis. Requirements of the Case Analysis,
which require computation, must be prepared using Microsoft Excel or Word or both and all the
work must be presented in a detailed manner. Requirements of the Case Analysis which require
a written response are expected to consist of an introduction, well-referenced body with
appropriate headings and sub-headings,conclusion and reference list. APA style is required.
Completed papers will typically be 4-5 pages in length and must read as a well-edited,
professional paper. All papers will be typed, double-spaced, spell-checked,grammarchecked,and prepared inAPA format
Read the VSBDC document provided to you and familiarize yourself with the basic tools of financial statement analysis. Choose a company (small, medium or large sized) whose financials you would like to analyze.
Go the SEC website http://www.sec.gov/edgar/searchedgar/companysearch.html
Click on Company Filings , then click on Company or fund name, ticker symbol, CIK .
Type in the CIK (or company name). (Sometimes there may be multiple options available; use your judgment, and click on the right link).
Once you get the list of forms filed for the company, type 10-K in the Form Type box. Now, only Form 10-Ks filed will appear.
Answer the following questions about the company chosen above:
(There are guidelines in the VSBDC article regarding the analysis tools you should use to answer the questions stated below)
– How well is the company doing as an investment?
– How well has management employed the company’s assets?
– Are profits high enough, given the level of sales?
– How well are the company’s assets being employed to generate sales revenue?
– Are receivables coming in too slowly?
– Is too much cash tied up in inventories?
– Does this customer have sufficient cash or other liquid assets to cover its short-term obligations?
– How quickly does the prospective credit customer pay its bills?
– As a potential or present long-term borrower, is the company’s debt load excessive?
– Are earnings and cash flow sufficient to cover interest payments and provide for some principal repayment?
– Identify three situations in your company that demonstrate strengths or weaknesses in the management of the affairs of the company. Elaborate what kinds of analyses you used in order to identify these strengths or weaknesses and the manner in which they can be addressed or improved (in case of weaknesses) or maintained (in case of strengths) Refer the three case studies provided in the VSBDC article as an example.
– Review the cash flow statements of the company and correlate it to the financial statements to identify if the company is in a sound financial position and whether their cash management strategy is adequate.
– Perform a trend analysis of the comparative financial statements and identify any significant trends in the companys growth or any other factor that you may observe as significant.Please cite any sources that you may use to substantiate your analysis.