Financial Management 620 Final Research Paper Project, writing homework help

timer Asked: Aug 13th, 2017
account_balance_wallet $100

Question description

I have a final assessment project paper coming up in 8 days (due on June 23). Please find the project below:

Steps in preparation of financial analysis report:

1.)  Select a publicly held company

2.)  Select a benchmark firm to compare your company against. The benchmark firm is typically the largest competitor.

3.)  Obtain the firm’s balance sheet, income statement, and statement of cash flows for 

the past 5 years. Download or read the firm’s annual report.

4.)  Go to:

Research EDGAR’s database for additional SEC report filings: 8-k, 10-Q.

4.)  The following table is the type of Excel or Word table that should be used to gather  and report your ratio and financial performance data. Note the 5 financial diagnostic categories that should be used in your analysis.

Financial diagnostic categories

 Chosen company   vs.

 Benchmark competitor

1.)  Liquidity of short-term assets

-Current ratio

-Cash ratio

-Quick ratio

-Current ratio

-Cash ratio

-Quick ratio

2.)  Long-term debt-paying ability

-Debt ratio

-Debt-equity ratio

-Times interest earned

-Debt ratio

-Debt-equity ratio

-Times interest earned

3.)  Profitability

-Net income/sales (profit margin)

-Net income/assets (ROA)

-Net income/shareholder equity  (ROE)

-Net income/sales (profit margin)

-Net income/assets (ROA)

-Net income/shareholder equity  (ROE)

4.)  Asset utilization/ management efficiency

-Total asset turnover

-Inventory turnover  measures

-Accounts receivable turnover

-Total asset turnover

-Inventory turnover  measures

-Accounts receivable turnover

5.)  Market measures

-Price/earnings ratio

-Earnings per common share

-Dividend payout

-Price/earnings ratio

-Earnings per common share

-Dividend payout

Use 2-3 ratios per diagnostic category. Place your ratio calculations in the table for your selected companies—primary company and benchmark competitor. Using 5 diagnostic categories, and 3 ratios to assess each category, results in 15 ratio measures per company that will be compared side by side.

6.)  To validate your research, 5 years of data should be analyzed.

7.) The financial analysis report must be written properly. They must include a title page, a table of contents, and a reference page. For both midterm and final report, information sources from the web, etc. must be cited properly, using APA style. 

This means that every table that you cut and pasted or typed from the web must have a source at the bottom of the table AND that citing must also be included in a reference page at the end of the report. 

The parts of the research paper are discussed below. The completed report (parts a through h) is due day 7 of week 6. Your project should include:

a.  An overview of the corporation.

  i.  Provide general information regarding the type of business, products and/or services, location of headquarters, name of CEO, number of employees, and countries of operation, etc.

b.  The latest financial statements

  i.  Get the income statement, balance sheet, cash flow statement, and the statement of owners’ equity for the past fiscal year. Create Turnitin-friendly versions of the financial statements; do not just ‘cut and paste’ them in your report. Do not forget to cite the source under each statement.

  ii.  If you cannot cut and paste them, you may have to type in the information in a table in your report.

c.  A summary of each financial statement

  i.  Take each statement and state the key parts in words.  Tell a story from each of the financial statements.  For example, for the income statement, the story starts like, “Total Revenues in 2010 were $10 billion, while Cost of Goods Sold were $8 billion, leaving a gross profit margin of $2 billion, or 20 percent of total revenues….After taking out interest and taxes from EBIT, the net income was $0.5 billion, or 5 percent of total revenues.”

d.  Ratio calculation (include 5 major types of ratios. Refer to chapter 3, Analysis of Financial Statements)

  i.  Organization of this section is based on the FIVE types of ratios listed in the text book.  Calculate the ratios from the financial statements in part c above using Excel or your calculator and present them in a table.

  ii.  Find industry financial ratios online (eg. and compare your corporation’s ratios to these industry ratios.

  iii.  Present your results following the five types of ratios discussed in part d.

  iv.  A table with both corporation and industry ratios is required;


e.  Discussion of key statistics provided by sources like Yahoo finance.

  i.  There are many different other statistics available for your corporation. These include market value, beta, and diluted EPS, etc. Discuss some of the key statistics that you think can assist you to determine if this corporation is a good buy or sell.

f.  For you to decide if a corporation’s stock is a good buy or sell, you must forecast several key variables, including the stock price. 

  i.  Use historical prices (5 years of monthly data recommended) and forecast the stock price for the next year. Use regression analysis, and/or moving average, etc. to create your forecast. 

  ii.  Create a graph from the historical data and show your forecast on the same graph. You can add a trend line to the graph to help you with a forecast.  Include the graph in your report.

  iii.  You need to say specifically what the forecasted value of the stock price is. 

  iv.  You must address the question, “Is this forecast reasonable?”  Must you amend your analysis to get a more reasonable forecast? 

g.  Other information pertinent to the corporation that could affect its future performance and stock price. 

  i.  This could include dividend policy, capital structure, bond ratings, expert opinions on TV, new projects, litigation, regulation, etc. Search for information on the web regarding this corporation. Look at company complaint blogs, etc.

h.  Recommendation regarding the future of this corporation. 

  i.  Is the stock a good buy, average buy, or a poor buy (implying a good sell)? 

  ii.  Include a justification of your recommendation based on your analysis and research. 

Tutor Answer

School: UC Berkeley


Running head: BEST BUY INC.

Best Buy Inc. Financial Analysis Report




1.0 Abstract
The online shopping industry is gradually gaining unmatched recognition in the United States.
Amazon Inc., for example, accounts for about 43% of the online retail sales in the United States.
The success of the online shopping industry is highly influenced by the spirit of innovation and a
loyal following. Ideally, online retailers have improved the shopping experienced and positively
altered the purchase paradigm of customers. This report analyses Best Buy Inc., one of the best
performing electronic retailers. Best Buy Corporation was founded by Robert Schulze as the Sound
of Music Store and later renamed as Best Buy Corporation in 1983. It has both online and physical
presence. The paper presents the financial statements of the company for the past fiscal year and
provides a well approached financial ratio analysis. Compared to Amazon, Best Buy’s financial
position is unstable and its stock is a good buy. Purchase of the company’s stock is likely to create
negative uncertainties in the earnings report.



Table of Contents
1.0 Abstract


2.0 Overview of the Corporation


3.0 Financial Statements


3.1 Income Statement


3.2 Balance Sheet


3.3 Statement Cash Flows


3.4 Statement of Equity


4.0 Ratio Analysis


5.0 Forecast of Variables


6.0 Key Statistics


7.0 The Future performance of the company


8.0 Recommendation Regarding the Future of Best Buy Inc.






2.0 Overview of the Corporation
Best Buy Inc., in collaboration with its subsidiaries, is one of the world’s best performing
companies that operates as a retailer of home office product, consumer electronics, entertainment
software, software appliances and related products in United States, China, Canada, Mexico and
Europe (Kwok, 2009). The Company was founded by Robert Schulze as the Sound of Music Store
and later renamed as Best Buy Corporation in 1983. Its headquarter is located in Richfield,
Minnesota. Today, the company has employed over 125,000 employees with unbeatable expert
advice on consumer electronics. Best Buy controls websites and retail stores under eleven brand
names comprising of; Best Buy, Future Shops, Magnolia Audio Video, Best Buy Mobile, Audio
Visions, Pacific Sales, Napster, Speakeasy, Five Star Appliances, Geek Squad and, The Carphone
Warehouse. The current Chairman and C.E.O of Best Buy Co. Inc. is Hubert Joly.
3.0 Financial Statements
This section presents the financial statements of the company for the financial year 2016.



3.1 Income Statement
Best Buy Inc. Company
Annual Income Statement, Fiscal Year 2016.
Fiscal Year Ended

Year 2016



Cost of goods sold


Restructuring Charges


Gross Profit


Operating Expenses
Research and Development


Sales, General &Admin


Non-Recurring Items


Other Operating Items


Operating Income


Add Income


Earnings before interest and tax


Interest Expense


Earnings before tax


Income Tax


Minority Interest




Equity Earnings


Net Income- Cont. Operations


Net Income


Net Income applicable to common shareholder 897
Retrieved from:
The total revenue for the fiscal year 2016 was $39,528,000. The cost of goods sold amounted to
$30,334,000 which resulted to a Gross Profit of $9,191,000. Best Buy incurred a number of
expenses such as sales and ad...

flag Report DMCA

Totally impressed with results!! :-)

Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors