The checkpoint assignment for BUS 311, Financial Management is one of a series of assignments designed to demonstrate that students have achieved the learning outcomes established for the majors in the College of Business and Management.

The specific objective of this critical assignment is to assure that students have a sufficient level of accounting and finance skills to conduct financial analyses of an organization. These exercises will provide students with the opportunity to integrate and implement theory to practice and will prepare students to develop a comprehensive business plan in the capstone course during the final year of study.

For the purpose of this exercise, students will choose a company for which they will conduct an environmental scan and a financial analysis. The analysis of the company should culminate with students recommending that the company is “excellent,” “healthy,” or “ill.” Students will be evaluated based on correctness of the calculations, the insight of the analysis, and the quality of the discussion relating to the requirements.

Before performing the financial analysis, students will prepare an environmental scan, which will discuss the various forces with which an organization must contend to assure that its business model has a chance for success.

The specific calculations should include:

• DuPont Identity
• Current Ratio
• Quick Ratio
• Inventory Holding Period
• Average Collection Period
• Debt Ratio
• Dividend Yield
• Required Rate of Return based on the Capital Asset Pricing Model
• Free Cash Flow
• Market Value Added
• Economic Value Added

Additionally, students will be expected to prepare an executive summary of the process of capital budgeting, using an example that is specific to the company that is being analyzed. An executive summary of cost-volume-profit analysis is also required, using an example that is specific to the company that is being analyzed.

The written paper is to be typed double–spaced, 1’ margins, Times New Roman and 12-point font, with correct spelling and grammar, proper citation, references, with a cover page and organized with headings. The instructor’s approval of the topic is required.

This has to be divided into 2 steps

Project step1: The attached assignment provides a framework for general financial analysis.

To help you through the analysis, a sample analysis is also included for you to study.

Complete Step-1.

• Start:

Pick up a company in the manufacturing industry. The market value (cap) has to be less than < 200 billion. To avoid redundant choice, please post your choice on the discussion board.

• Step 1:

Use the following template to work out data collection and ratio calculation.

Collect data from barchart.com / morningstar.com, and use the excel template to work out the financial ratios.

_fmu_project_UsingBarchartTemplate_sbux – Copy.xlsx

Examples with collected data

• • SBUX-annual-Balance Sheet-2019-10-22.csv
  • SBUX-annual-Income Statement-2019-10-22.csv
  • SBUX-annual-Cash Flow-2019-10-22.csv

Writing guide: _fmu_project_guide.docx

Example of financial analysis:

• Sample essay

_fmu_project_sampleEssay.pdf

• Guide on ratio analysis

_fmu_project_example_financials.pdf

Project step 2: Follow the guide in the attached template and finish the calculation of cost of capital (WACC) and economic value added.

Project – Step 2: _fmu_project_step2.docx

Excel template: _fmu_project_excelTemplate.xlsx

The company I chose was General Motors but feel free to choose another one