Final Statement Analysis

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hfre7

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Writing

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Part One: Spreadsheet

For this assignment you will select to work on EITHER Polaris or Arctic Cat. Depending on which you choose, access the firm’s financial statements for fiscal years ending after December 31, 2014, from the firm’s website (Polaris.com & Arcticcat.com) or the SEC database (www.sec.gov). Use the most current 10K statements available on SEC or annual statements in Yahoo Finance. Complete the following for your chosen firm (Polaris or Artic Cat) in an Excel spreadsheet:

Horizontal and vertical analysis of the income statements for the past two years (all yearly balances set as a percentage of total revenues for that year) for both firms.
Horizontal and vertical analysis of the balance sheets for the past two years (all yearly balances set as a percentage of total assets for that year) for both firms.
Ratio analysis (eight ratios of your choosing) for the past two years PLUS a measurement for the creditworthiness of both firms as measured by Altman’s Z-score.

Review both videos: Performing Vertical Analysis using Excel and Performing Horizontal Analysis using Excel, which demonstrate the completion of vertical and horizontal analysis using Excel. If you would like some additional guidance on the spreadsheet requirement of the portfolio project, please watch the video. Note that the video does not discuss adding the 8 required ratios to your spreadsheet; however, you are required to submit your company ratios on this spreadsheet as well as the vertical/horizontal analysis.

Part Two: Paper/Essay

With the company that was chosen in part one, your paper must:

Be 4-6 pages in length.
Include a proper introduction and conclusion.
Include a reference page.
Provide a comparative analysis of the financial health of both firms. Your paper should provide your reader with an overall understanding of the financial health of the companies including the following:

- Discussion of the ratio analysis results, including rationale for the ratios chosen.
- Discussion of all horizontal and vertical analysis from above.
- Discussion of four items from the management discussion of the firm that support the conclusion formed in your discussion of the financial results.

Finally, read through the Portfolio Project Part Two Grading Rubric in the Module 8 folder that will be used to grade your assignment—you will get a feeling for expectations by doing so. Your instructor is here to help you through this project. If you have questions, please let your instructor know. He or she may be willing to take a quick look at your horizontal and vertical analysis to give you feedback in advance since you will not have had much experience on that calculation prior to the project. Always communicate right away with your instructor when you need assistance!

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FIN400: Portfolio Project Rubric Part One, Calculations, Module 7 Criteria Meets Expectation Content, Research, and Analysis 33‐40 Points Content Demonstrates strong or adequate knowledge of expanded analysis of financial statements; correctly represents knowledge from the readings and sources. 37‐45 Points Requirements The Portfolio includes all of the required components, as specified in the assignment. 41‐50 Points Spreadsheet Provides strong or Analysis adequate thought, insight and analysis of concepts and applications regarding the analysis of financial ratios. 33‐40 Points Spreadsheet The spreadsheet Presentation was well‐organized and presented all of the required elements in a clear format. Total points possible = 175 Approaches Expectation Below Expectation Limited Evidence 25‐32 Points Some significant but not major errors or omissions in demonstration of knowledge. 17‐24 Points Major errors or omissions in demonstration of knowledge. 9‐16 Points Fails to demonstrate knowledge of the materials. 28‐36 Points The Portfolio includes most of the required components, as specified in the assignment. 31‐40 Points Some significant but not major errors or omissions in thought, insight and analysis. 19‐27 Points The Portfolio includes some of the required components, as specified in the assignment. 21‐30 Points Major errors or omissions in thought, insight and analysis. 10‐18 Points The Portfolio includes few of the required components, as specified in the assignment. 11‐20 Points Fails to demonstrate thought, insight and analysis. 25‐32 Points Some significant but not major errors or omissions in the presentation of data in the spreadsheet. 17‐24 Points Major errors or omissions in the presentation of data in the spreadsheet. 9‐16 Points The spreadsheet was poorly organized and was missing critical elements. FIN400: Portfolio Project Rubric, Part Two, Module 8: Essay Criteria Meets Expectation Content, Research, and Analysis 17‐20 Points Content Demonstrates strong or adequate knowledge of expanded analysis of financial statements; correctly represents knowledge from the readings and sources. 21 ‐25 Points Requirements The Portfolio includes all of the required components, as specified in the assignment. 33‐40 Points Critical Essay Demonstrates Analysis strong or adequate critical analysis of the findings contained in the spreadsheet. Mechanics and Writing 25‐30 Points Organization Project is clearly organized, well written, and in proper essay format including an introduction, body, and conclusion. Conforms to project requirements. 25‐30 Points Grammar and Strong sentence Style and paragraph structure; few or Approaches Expectation Below Expectation Limited Evidence 13‐16 Points Some significant but not major errors or omissions in demonstration of knowledge. 9‐12 Points Major errors or omissions in demonstration of knowledge. 5‐8 Points Fails to demonstrate knowledge of the materials. 16‐20 Points The Portfolio includes most of the required components, as specified in the assignment. 25‐32 Points Some significant but not major errors or omissions in critical analysis. 11‐15 Points The Portfolio includes some of the required components, as specified in the assignment. 17‐24 Points Major errors or omissions in critical analysis. 6‐10 Points The Portfolio includes few of the required components, as specified in the assignment. 9‐16 Points Fails to demonstrate critical analysis. 19‐24 Points Small number of significant but not major flaws in organization and writing; is in proper essay format. In a minor way does not conform to project requirements. 13‐18 Points Major problems in organization and writing; does not completely follow proper essay format. In a significant way does not conform to project requirements. 7‐12 Points Project is not well organized or well written and is not in proper essay format. Does not conform to project requirements. 19‐24 Points Small number of significant but not major errors in 13‐18 Points Inconsistent to inadequate sentence and 7‐12 Points Poor quality; unacceptable in terms of grammar FIN400: Portfolio Project Rubric, Part Two, Module 8: Essay Demonstrates proper use of APA style no minor errors in grammar and spelling; appropriate writing style; clear and concise with no unsupported comments. 25‐30 Points Project contains proper APA formatting, according to the CSU‐Global Guide to Writing and APA Requirements, with no more than one significant error. Total points possible = 175 grammar and spelling; generally appropriate writing. paragraph development; work needed on grammar and spelling; does not meet program expectations. and/or spelling; inappropriate writing style that interferes with clarity. 19‐24 Points Few errors in APA formatting, according to the CSU‐Global Guide to Writing and APA Requirements, with no more than two to three significant errors. 13‐18 Points Significant errors in APA formatting, according to the CSU‐Global Guide to Writing and APA Requirements, with four to five significant errors. 7‐12 Points Numerous errors in APA formatting, according to the CSU‐Global Guide to Writing and APA Requirements, with more than five significant errors.
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Explanation & Answer

Hello, please use below final copies. Ignore the 2 above.

Running head: POLARIS INDUSTRIES INC.

Polaris Industries Inc.
Name
Course
Professor
Date

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POLARIS INDUSTRIES INC.

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Introduction
Polaris Industries Inc. is a brand that has established itself in the automobile industry.
The firm is involved in the engineering, designing, manufacturing and the marketing of
power sports vehicles globally. The firm has four primary segments include the adjacent
global markets, the aftermarkets, off-Road Vehicles, and the Motorcycles. The firm also
offers various accessories and replacement parts for both the motorcycles and the multiple
vehicles. Polaris was incorporated in the year 1954 and has its headquarters in Medina,
Minnesota. Conversely, Polaris Industries is found in the cyclical consumer sector and the
recreational vehicles industry. It is estimated to have 11,000 full-time employees. Ratio,
vertical and horizontal analysis provides an in-depth understanding of the company, the Z
Altman score, and management discussion also offers more information about Polaris
industries.
Ratio analysis
Liquidity ratio is used to establish the ability of a company to meet its short-term
obligations. The current ratio and the quick ratio are the common liquidity ratios used. The
former is obtained by dividing the current assets by the current liabilities (Khidmat &
Rehman, 2014). Inventory is subtracted from the number of existing assets and then divided
by the current liabilities to obtain the latter. It is evident that Polaris had a current ratio of
1.11 in 2017 and 1.24 in 2016. The quick ratio was 0.42 in 2017 and 0.46 in 2016. The
current ratio is above a value of one hence the firm can pay up its current liabilities.
However, the quick ratio paints a different picture as it has a value that is below one.
Solvency is used to gauge the level of debt in a company. The time's interest earned,
and the debt to total assets are the two ratios used to establish the leverage position of any
particular company. The latter is found by dividing the number of total liabilities by the

POLARIS INDUSTRIES INC.

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amount of total assets whereas the fo...