Financial Statement Analysis and Firm Performance

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Business Finance

Description

About Your Signature Assignment

Signature/Benchmark Assignments are designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. Signature/Benchmark Assignments are graded with a grading guide or an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for course/program improvements.

Purpose of Assignment

The purpose of this assignment is to allow students the opportunity to present a business idea supported by strong financial information. The student will be able to identify the possible challenges of doing business in a foreign country and how to approach them.

Assignment Steps

Resources: Microsoft® PowerPoint®, Signature Assignment: Financial Statement Analysis and Firm Performance Template

Prepare a 16- to 20- slide Microsoft® PowerPoint® presentation showing the details of a business you are interested in starting in a foreign country, and for which you need $300,000. The presentation should include the following information:

  • Business name
  • Executive summary
  • Description of the foreign country
  • Business description and structure
  • Market and company analysis
  • Marketing and sales operational plan
  • How you plan to use the $300,000
  • Financial statements forecast (3 years)
  • Business health assessment - using the following ratios:
    • Liquidity ratios
    • Solvency ratios
    • Asset management ratios
    • Profitability ratios
    • Market value ratios

Analyze and calculate the following scenarios in 525 words, including which one would you choose and why, and which financing option is best for your busines:

  • Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years.
  • Investor #2 offers you the $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year.

Discuss in 525 words the challenges and risks you may face in starting a business in a foreign country including the following:

  • Cultural, business, and political risks.
  • How you plan to avoid operational, transaction, and translation exposure.

Format your assignment consistent with APA guidelines.

Unformatted Attachment Preview

Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years Amount Period (years) Interes rate $ 300.000 5 8% FV= PV × (1 + r)n Answer- Total Payment Interest Paid Refer to the Solved Example 6 on Page 84 of your text. Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5 Amount Period (years) Interes rate $ 300.000 5 8% Answer Annual Interest PaymentYear 5 Payment Total PaymentInterest Paid- Refer to the Solved Example 6 on Page 84 of your text. Scenario #1 Scenario #2 Total Payment $ $ - Interest paid $ $ - Which of the scenarios is the best option? Answer: Refer to the Solved Example 6 on Page 84 of your text.
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Explanation & Answer

I have done your work. Thank you.

CLASSIC RESTAURANT
Student’s name:
Institution affiliation:
Date:

Content
Executive summary………………………………3
Description of the foreign country…….................4
Business description & structure………………....5
Market & company analysis…………...................6
Marketing & sales operational plan……………....7
The plan for usage of $300,000……......................8
Forecast for Financial Statement..……..................9
Assessment of Business health ………………….10
➢ Liquidity ratios……………………..................11
➢ Solvency ratios……………………..................12
➢ Asset management ratios…………..................13
➢ Profitability ratios………………….................14
➢ Market value ratios………………..………….15
Reference………………………………………..16

Executive summary
Classic Restaurant is a start-up business that is aimed at provide a healthy

diet in the Chinese market.
Mission statement: To satisfy the nutritional requirements of the
customers (Chinese) through the provision of healthy diets & classic services.
Vision statement: To be the best & highly recognized restaurant offering
the quality food & satisfactory services.

Products: Healthy foods & provision other restaurant services

Description of the foreign country
China has ready market for food products & other
services. Through research, it is evident that the rates

of obesity have been escalating significantly in China
in the past decades. Thus, there is need for the

provision of healthy diets & other healthy services in
China.

Business description & structure
The Classic Restaurant is a start-up business which targets a Chinese
market that has high demand for a healthy diet & healthy lifestyles. The
products & services to be provided by this restaurant are tailored to meet the
customer demand in the Chinese market.
The business structure would consist of a manager who will be the
leader of all the operations, waiters, chefs, gym instructors & other personnel
that will be giving the directions to the consumers.

Market & Company analysis
China is among the highly populated countries in
the world. In addition, it also has an emerging

economy. This means the middle & high social classes
are expanding. These consumers will therefore provide

...


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