Prior to beginning work on this assignment, read  Financial Statement Analysis in Mergers and Acquisitions (Links to an external site.) online resource. Carefully review the Company Profile and Due Diligence Guidelines document. You will support your findings and recommendations with evidence from at least four scholarly and/or professional sources in addition to the required annual reports for your chosen acquiring and target companies. Be sure to include any links to professional websites used as references or to access company information. In this assignment, you will prepare a financial analysis for a merger or acquisition based on the acquiring and target companies you identified in the Week 2 assignment. This analysis will include items 3, 5-8, and 10 from the Company Profile and Due Diligence Guidelines document.(See Attached Document) The completed report must include the following elements: Analyze business valuation techniques, and compute, summarize, and identify trends for the following financial ratios for the target company: Inventory turnover for the past three years Price to book value for the past three years Price to earnings for the past three years Sales to accounts receivable for the past three years Sales to inventories for the past three years Sales to fixed assets for the past three years Earnings to book value for the past three years Create sales profiles for both the acquiring and target companies, including the following: Description of the market Gross and net sales for the past three years Comparative advantages and disadvantages New developments and industry trends Research program, cost history, and scope results Analyze the earnings and dividends for both companies, including the following: Earnings records for the last three years Earnings comparisons with the industry for the past three years Dividends and earnings records for the past three years in total and per share Potential economies Analyses of selling and general administrative expenses Evaluate the short-term and long-term assets for both the acquiring and target companies, including the following: Relationships of cash to current liabilities Pricing methods Accounting methods and procedures Analyses of investments Evaluate the short-term and long-term liabilities for both the acquiring and target companies, including the following: Long-term loans outstanding and terms Dividend and interest arrearages Contingent liabilities: warranties, patent infringements, loss contracts, and compensation for services Pensions Commitments for new buildings, machinery, and inventories Evaluate three-year projected financial data for the target company, including the following: Assumptions for the projected pro forma financial statements Projected earnings forecast, including income statements and statement of cash flows

Questions to answer in the report:What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?How can financial ratios extend your understanding of financial statements? What questions do the time series of ratios in case Exhibit 7 raise? What questions do the ratios on peer firms in case Exhibits 8 and 9 raise?Is Krispy Kreme financially healthy at year-end 2004?In light of your answer to question 3, what accounts for the firm's recent share price decline?What is the source of intrinsic investment value in this company? Does this source appear on the financial statements?

Getting into the habit of reading the Wall Street Journal or other economic journals is another goal of this class. You are encouraged to subscribe to the Wall Street Journal. The Journal offers major discounts for students and helps build the much needed knowledge and skills for business majors.Please, make a habit to read and while reading try to gather information about the current state of the US economy. Provide an overall assessment of the economy.. You might want to follow the framework provided below to analyze the economy and current fiscal and monetary policy. Pay attention to identify all sources for pictures, videos, and other items in your paper.Suggested FrameworkAn assessment of current economic conditionsJob market (current data)Economic Growth (cite current data). What has been the projector of this growth? Has it accelerated or slowed and why?Price Level (cite current data)What are the current threats to the US economy presently?What is the current fiscal policy being pursued? What are some of the limitations of this policy?What is the current monetary policy being pursued or envisioned to be pursued for 2018? What are some limitations to this policy?What is your prognosis for the future and why?ConclusionBibliography (Use MLA or APA format). At least 6 resources needed for this paper.Appendices, graphs, tables.