Purpose of Assignment
The purpose of this assignment is to expose you to the basic process involved in the analysis of the cash flow statement.
Assignment Steps
Resources: Appendix A of Financial Accounting: Tools for Business Decision Making
Note: This is a three part assignment.
Part 1
Answer questions A-F in problem CT12-1 in Financial Accounting (p. 640).
Provide a 12 to 15 slide presentation including an analysis of your findings.
Include conclusions concerning the management of the company’s cash.
Add detailed notes to your slides sufficient to explain your analysis and conclusion.
Part 2
Complete a 12 to 15 slide presentation summarizing the findings and recommendations from the following questions:
- What is the par or stated value per share of Apple’s common stock?
- What percentage of Apple’s authorized common stock was issued at September 27, 2014?
- How many shares of common stock were outstanding at September 28, 2013, and at September 27, 2014?
- Calculate the payout ratio, earnings per share, and return on common stockholders’ equity for 2014.
- What can you conclude from the metrics you calculated? What reasons would you offer to support your conclusions about whether the stock is a good investment from th stockholder’s perspective?
Add detailed notes to your slides sufficient to explain your analysis and conclusion.
Part 3
Present ONE of the presentations in class using the guidelines in the Rubric. Your presentation should be 10 to 15 minutes with 1 to 2 minutes for Q&A. Your audience is company management.
Use the Week 5 Excel® spreadsheet and submit with your analysis and summary
Materials
- Week 5 Excel® Spreadsheet
- Financial Accounting: Appendix A
- Financial Reporting Problem: Presentation