Financial statement analysis and report
ACFI 1001 Accounting for Decision Makers – Individual Project (15%)
Financial Statement Analysis and Report
Objectives
Apply theory in practice
Conduct analysis of financial statement – to look beyond the numbers
Experience formal report writing.
REQUIRED: Written report (a soft copy on blackboard via turnitin and printed copy to tutors is compulsory)
1. Obtain the most recent annual report for two companies in any of the industries on the Australian Stock Market (for example, mining, retail, manufacturing, construction, service, transport). The reports should contain at least three years of income statement data and two years of balance sheet data. Use one of the chosen companies as your ‘base company’ and the other as your ‘comparison company”.
2. Analyze at least 3 (three) items on the income statement (statement of financial performance) for the base company that would be important to an investor, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer.
3. Analyze at least 3 (three) items on the balance sheet (statement of financial position) for your base company that would be important to an investor, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer.
4. Analyze your base company’s investing, operating and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities, the two largest operating activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that your company appears to be employing.
5. Identify 2 (two) items not included in (or derived from) the financial statements that you think would be important to someone considering whether to invest in your base
Financial Statement Analysis and Report
Objectives
Apply theory in practice
Conduct analysis of financial statement – to look beyond the numbers
Experience formal report writing.
REQUIRED: Written report (a soft copy on blackboard via turnitin and printed copy to tutors is compulsory)
1. Obtain the most recent annual report for two companies in any of the industries on the Australian Stock Market (for example, mining, retail, manufacturing, construction, service, transport). The reports should contain at least three years of income statement data and two years of balance sheet data. Use one of the chosen companies as your ‘base company’ and the other as your ‘comparison company”.
2. Analyze at least 3 (three) items on the income statement (statement of financial performance) for the base company that would be important to an investor, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer.
3. Analyze at least 3 (three) items on the balance sheet (statement of financial position) for your base company that would be important to an investor, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer.
4. Analyze your base company’s investing, operating and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities, the two largest operating activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that your company appears to be employing.
5. Identify 2 (two) items not included in (or derived from) the financial statements that you think would be important to someone considering whether to invest in your base