The completed report should include:
An introduction to the company, including background information.
A financial statement review.
Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.
A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
Liquidity
Financial leverage
Asset management
Profitability
Market value
Calculate Return on Equity (ROE) using the DuPont system.
Assess management performance by calculating Economic Value Added (EVA).
Evaluate the soundness of the company’s financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class.
Sample Solution