Investment analysis and forecasting | Accounting homework help

 

In 3-6 pages, complete a ratio analysis using a provided balance sheet and income statement, specify how you would analyze a potential investment, and describe how you would forecast a company’s potential success.

Introduction

An investment analysis has two fundamental components: 1) A financial analysis, such as reviewing current financial ratios within the company, and 2) a non-financial analysis, which is reviewing a company’s strategic vision, employee satisfaction, et cetera. The first two parts of your assessment provide an opportunity for you to demonstrate both of these types of analyses.

The goal of forecasting the performance of a company is to estimate the financial performance of a company over a selected period of years. When forecasting a company’s performance, similar to an investment analysis, you look at both financial and non-financial factors. This is the focus of the last part of your assessment.

Instructions

Part 1: Ratio Analysis (1–2 pages)

Using the XYZ Balance Sheet and Income Statement [DOC] and the table provided below, complete the following for XYZ Inc.:

  1. Calculate the indicated ratios for XYZ.
  2. Construct the DuPont equation for both XYZ and the industry.
  3. Use your analysis to outline XYZ’s strengths and weaknesses.
  4. Say XYZ had doubled its sales as well as its inventories and common equity during 2013. Do you think this would this affect the validity of your ratio analysis? No calculations are necessary.

RatioXYZ Inc.Industry AverageCurrent 2.0xQuick 1.3xDays sales outstanding 35 daysInventory turnover 6.7xTotal assets turnover 3.0xProfit margin 1.2%ROA 3.6%ROE 9.0%

Part 2: Investment Analysis (1–2 pages)

For this part of the assessment, imagine that you are looking into investing in a manufacturing company, such as a car company or a steel company. Your goal is to create a plan for determining the potential strength of an investment in the company (investment analysis) and determining how the company might perform over a selected period of years (forecast).

After considering a potential investment in this manufacturing company, address the following:

  • What are some of the qualitative factors that must be considered when selecting a company in which to invest?
  • What financial ratios would you examine, and why?
  • What non-financial factors would you examine, and why?

Use research from at least two references to support your ideas.

Part 3: Forecast (1–2 pages)

Using the same hypothetical manufacturing company described above, address the following questions related to forecasting the performance of the company:

  • How would you forecast revenue, profitability, and asset management, such as inventory control and accounts receivable, for a hypothetical manufacturing company?
  • What ratios would you analyze?
  • What techniques would you use? Why?
  • What non-financial factors would be important in your analysis?

Use research from at least two references to support your ideas.

Additional Requirements
  • Length: Your document should include 3–6 typed, double-spaced pages to cover all of the parts of the assessment. In addition, include a title page and references page.
  • Written communication: Written communication should be free of errors that detract from the overall message.
  • Style and Formatting: Apply APA style and formatting to cite your references.
  • Resources: You must use at least four references, at least two references supporting Part 2 and two references supporting Part 3.
  • Font and font size: Times New Roman, 12 point.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

  • Competency 2: Evaluate the financial health of the firm
    • Construct a ratio analysis for a company.
    • Describe how to forecast revenue, profitability, and asset management.
    • Evaluate techniques for forecasting financial statements.
    • Choose ratios to include in the forecasting analysis.
    • Choose non-financial factors to include in the forecasting analysis.
  • Competency 5: Apply evaluation principles of various financial instruments.
    • Articulate qualitative factors to consider when selecting an investment.
    • Determine financial ratios to consider when selecting an investment.
    • Determine non-financial factors to consider when selecting an investment.
US Custom Writers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.