Financial Statement Analysis

Analysis of the Balance Sheet
This part of the assignment will focus on analyzing the balance sheet for St. Anthony Medical Center. Relevant
scoring guide criteria:
Explain the financial position of St. Anthony Medical Center by comparing assets and liabilities.
“Explain” means to make something (an idea, situation, or problem) clear to someone by describing it in more
detail or revealing relevant facts or ideas.
Explain the financial position of St. Anthony Medical Center compared to previous years.
Explain how accounts receivable changed from previous years.
Analyze the financial obligations of St. Anthony Medical Center and their implications for the upcoming year.
“Analyze” means to examine methodically and in detail the constitution or structure of something (especially
information), typically for purposes of explanation and interpretation.
Adhere to the rules of grammar, usage, and mechanics.
“Grammar” refers to the basic rules for how sentences are constructed and how words combine to make
sentences (for example, word order, case, and tense).
“Usage” refers to correct word choice and phrasing, particularly with regard to the meanings of words and
phrases.
“Mechanics” refers to correct use of capitalization, punctuation, and spelling.
Apply APA formatting to in-text citations and references.
Be sure to include a separate references page.
Some questions to consider that may help you organize your analysis are:
Do assets exceed liabilities?
What does this tell you about the financial position of St. Anthony Medical Center?
How has the financial position of St. Anthony Medical Center changed since last year?
How has it changed since the year prior?
How have the accounts receivable changed from previous years, and what does this tell you?
Using the balance sheet, what financial obligations does St. Anthony Medical Center need to consider in the
upcoming year?
The goal of this analysis is to create an accurate picture of the financial trends for St. Anthony Medical Center,
its current financial obligations, and how the upcoming fiscal year projects in light of this information.
Analysis of the Income Statement
This part of the assignment will focus on analyzing the income statement for St. Anthony Medical Center.
Relevant scoring guide criteria:
Analyze patient revenue compared to previous years and the implications for the financial health of St. Anthony
Medical Center.
Adhere to the rules of grammar, usage, and mechanics.
Apply APA formatting to in-text citations and references.
Some questions to consider that may help you organize your analysis are:
Has patient revenue increased or decreased from previous years?
What could this indicate about the financial position of St. Anthony Medical Center?
The goal of this analysis is to create an accurate picture of trends tied to the overall financial health of St.
Anthony Medical Center.

Sample Solution

Mortgage Financing Problem

Suppose you are planning to buy a house using a 30 years mortgage financing.
Which house would you like to buy? What is its price? If you provide 20% down payment, what will be the approximate amount needed to complete the transaction, including closing costs?

How would you set up the timeline for this problem? What are the calculator keystrokes or excel formula for solving this problem?

What is the loan amount for the mortgage problem? What mortgage interest rate can you get? What will be the monthly payment? How much of that is interest and how much is principal repayment in the 1st and 2nd month?

How much principal amount will be remaining after the 85th payment?

Understanding Time Value of Money

What do you understand by the term time value of money? What do you feel about it? What are some of the reasons that money has a time value?

Sample Solution

Auditing Principles and Procedures

Q1. Inventory management in corporations identifies management’s practices, investigate efficient and effective inventory management approaches, and efficient and effective inventory management practices, which are key points for an auditor to ensure evidence for an opinion in the audit report on inventory. (minimum 200 word)

Imagine that you are an auditor of a corporation in KSA and answer the following:

Bring out the inventory management process you would follow to check efficient and effective inventory management practices in the corporation.
List done the important functions with examples in the inventory management process.
Explain the audit tests you would cover with related assertions to get assured evidence
Conclude your testing on likely and tolerable misstatements allocated to the inventory account

Q2. What control purposes and management assertions are supported by bank reconciliations? (Minimum 100 word)

Q3. The standard unqualified report is issued when the auditor has gathered sufficient evidence, the audit has been performed in accordance with PCAOB standards, and the financial statements conform to GAAP.

What are the important elements necessary for such a report issued by an auditor in reporting of financial statements, explain? (Minimum 100 word)

Sample Solution

Comparative analysis intermediate accounting

Create a 10- to 12-slide presentation that addresses each question in the Comparative Analysis Case: The Coca-Cola Company and PepsiCo, Inc. on p. 824 in Ch. 15 of Intermediate Accounting.

Submit your assignment in a Powerpoint presentation. Please also attach the answer sheet provided.

The Coca-Cola Company and PepsiCo, Inc.

The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online

Stock price data can be found in the company’s annual 10K, filed at the SEC.

Instructions

Use the companies’ financial information to answer the following questions.

(a) What is the par or stated value of Coca-Cola’s and PepsiCo’s common or capital stock?

(b) What percentage of authorized shares was issued by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?

(c) How many shares are held as treasury stock by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?

(d) How many Coca-Cola common shares are outstanding at December 31, 2014? How many PepsiCo shares of capital stock are outstanding at December 31, 2014?

(e) What amounts of cash dividends per share were declared by Coca-Cola and PepsiCo in 2014? What were the dollar amount effects of the cash dividends on each company’s stockholders’ equity? (f) What are Coca-Cola’s and PepsiCo’s return on common/capital stockholders’ equity for 2014 and 2013? Which company gets the higher return on the equity of its shareholders?

(g) What are Coca-Cola’s and PepsiCo’s payout ratios for 2014?

(h) What was the market price range (high/low) for Coca-Cola’s common stock and PepsiCo’s capital stock during the fourth quarter of 2014? Which company’s (Coca-Cola’s or PepsiCo’s) stock price increased more (%) during 2014?

Sample Solution

Financial Worksheet

Description

In this assignment, begin establishing a personal financial plan, reflecting your learning to date in the course. Now that you have an appreciation for developing long-term and short-term financial goals, you will be able to plan appropriately and make adjustments to reflect your intentions as well as outline steps to make necessary changes. In this milestone, you will complete four spreadsheets: Worksheet 1: Personal Financial Goals Worksheet; Worksheet 2: Financial Objectives Worksheet; Worksheet 4: Balance Sheet Worksheet; and Worksheet 5: Simplified Income Statement Worksheet, and write a 2-3 page summary.

Sample Solution

Accounting questions

Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable. Make sure to provide examples for each of the questions below.

a.Describe and explain the significance of each of the following: payback period, internal rate of return (IRR), modified internal rate of return (MIRR), net present value (NPV), and profitability index (PI). Explain. Provide examples for better clarity.
b.Discuss the notions of conventional and nonconventional cash flows in capital budgeting. Which investment evaluation criteria would you use for unconventional cash flows and why? Provide a fictitious unconventional cash flow example and apply the payback period, NPV, IRR, MIRR, and PI methods to your example. Interpret the results.

Sample Solution

Finance Economics & Decision

Briefly address the following:

What are the 5–10 most useful takeaways you have learned in this course?
How will you apply what you have learned in this course to the Marketing and Strategy Business Plan that you’ve been developing throughout your MBA studies?
How might you apply what you learned in this course to your future professional work?
In your responses, either provide constructive critiques of others’ postings, or illustrate others’ postings with your own professional experiences.

Sample Solution

Importance of Cash

Generating cash is the ultimate responsibility for managers today. Cash and cash flow are considered the “lifeblood” of a business.

How important has cash generation been for your current company or a prior employer? How is cash generation different from the concept of profit and loss (P&L) in accounting? Provide an example of how a company manages cash flow.

Sample Solution

Rate of return for stocks and bonds

Assignment Steps
Calculate the following problems and provide an overall summary of how companies make financial decisions in no more than 700 words, based on your answers:

Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.
Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year?
CAPM: A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock?
WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company’s weighted average cost of capital (WACC)?
Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

Sample Solution

XYZ Financial Services

You task is to produce a file specification that Premise Health can offer to support a biometrics screening program.

XYZ Financial Services is a Premise Health client and they have hired Wellness 123 as a vendor to produce analytics on biometric screenings that are offered to their employees. The Client Data Extract Team will have a discovery meeting with The Director of Client Operations (DCO) and Wellness 123 to understand what data fields are needed. Wellness 123 will receive a flat flat file from Premise Health so they can credit members for participating in the program to earn their $100 incentive and so that they can perform the analytics that XYZ being a start up company, does not have well defined data requirements for their programs and is lookig for Premise Health to provide a layout.

Sample Solution