Managerial Accounting Financial Statement Analysis Project

accounting

Description

ACG 2071 Managerial Accounting

Chapter 13 Financial Statement Analysis Project

 

This assignment is due Tuesday, Nov 12th by midnight via Canvas email. It will not be accepted late for any reason, but you can submit it early.

Students should read chapter 13, as well as complete the pre-work quiz and Learn Smart for chapter 13 in Connect prior to attempting this project.

Use the following data in addition to the financial statements provided:

  • Target market price per share of $72.23 and Wal-Mart market price per share of $69.12
  • Target number of outstanding common shares is 561.7 in millions. (use the number provided)
  • Wal-Mart number of outstanding common shares is 3073.19 in millions. (use the number provided)

 

After your financial analysis is complete, please answer:

Which stock would you buy and why? 

Write three detailed paragraphs addressing the strengths and weaknesses of each company, as well as your reasons for purchasing Target or Wal-Mart stock.  The strengths, weaknesses, and your investment choice should be described in 1.5 to 2 pages typed, 12-point font, double spaced with one inch margins.

Important: The financial calculations should be completed for 2016 only. Annual reports provide several prior years information so investors and creditors can spot trends from year to year. You will not use 2012, 2013, or 2014 information for any of your calculations. You need 2015 for all ratios that require an average. For example:

(end of year 2015 + end of year 2016) / 2 = average

All ratios should include the numerators and denominators in columns F and I, and answers in columns G and J.  Do NOT add zeros. Use the numbers provided. Show your work!

Email the following when submitting your assignment:

1)      Excel worksheet file “saved as” the following file name…lastnamefirstname.xlsx

If I were sending the file, I would save it as

WrightChristine.xlsx

2)      Your paper typed in Word. The file should be saved in the same name format.

lastnamefirstname.docx

 

3)      The Excel and Word file should also include your name in the heading on the worksheet and written paper. Your name needs to appear on the papers when I print the documents.

 

Points will be deducted for not following directions.

Please let me know if you have any questions.

Instruction Files

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