week5 final

Week5 final

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 UAGC 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.

• The Coca-Cola Company: Form 10-K (Links to an external site.) – Financial statements and

notes start on page 60.

o Accounts receivable, page 81

o Inventories, page 82

o Depreciation, page 96

o Goodwill, page 83

• Keurig Dr Pepper Annual Report (Links to an external site.)

o Click on the 2018 Annual Report

o Accounts receivable, page 72

o Inventories, page 72

o Depreciation, page 73

o Goodwill, page 74

• PepsiCo Annual Report (Links to an external site.) – Financial statements and notes start

on page 79.

o Accounts receivable, page 124

o Inventories, page 89

o Depreciation, page 95

o Goodwill, page 88

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 these companies?

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.

Conclusions

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 UAGC Writing Center’s guide, Tables, Images, & Appendices (Links to an external site.).

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 UAGC Writing Center’s

APA Style. (Links to an external site.)

• 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 (Links to an external site.).

• Must utilize academic voice. See the Academic Voice (Links to an external site.) 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 (Links to an external site.) as well

as Writing a Thesis Statement (Links to an external site.), refer to the UAGC 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 (Links to an external site.)

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 UAGC

Writing Center’s Citing Within Your Paper (Links to an external site.)

• Must include a separate references page that is formatted according to APA style as

outlined in the UAGC Writing Center. See the Formatting Your References List (Links to

an external site.) resource in the UAGC Writing Center for specifications.

 

 

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