Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

This Portfolio Project has two parts: calculations and a 4- to 6-page essay. While the computations requirements of this assignment are significant, equally significant are your discussion and analysis of quantitative results of AT&T financial statement. You have to create two files:1) a spreadsheet containing AT&T’s horizontal and vertical analysis (and perhaps AT&T ratios) and 2) a word document containing your essay.

Select publicly traded company (AT&T, Inc) and carry out the expanded analysis on financial statements. Use the most current 10K statements available on www.sec.gov http://www.sec.gov or annual statements in finance.yahoo.com http://finance.yahoo.com.

Part 1: Complete following for your selected firm in the Excel spreadsheet:

1. Horizontal and vertical analysis of Income Statements for the past three years (all yearly balances set as a percentage of total revenues for that year).

2. Horizontal and vertical analysis of Balance Sheets for the past three years (all yearly balances set as a percentage of total assets for that year).

3. Ratio analysis (eight ratios of your choosing) for past three years PLUS a measurement for the credit worthiness of your firm as measured by Altman’s Z-score.  Note that if you used your chosen firm for our ratio-related discussion posts, then you must also present industry-average ratios or current year competitor ratios for your ratio analysis. Comparing your firm’s ratios to a close competitor or an industry-average ratio makes your analysis much more meaningful.

Part 2: The Paper:

• 4-6 pages in length.

• Include a proper introduction and conclusion.

• Include a reference page.

• Your paper must provide your reader with the overall understanding of the financial health of your chosen firm including the following:

i) Discussion of the ratio analysis results, including rationale for the ratios chosen.

ii) Discussion of all horizontal and vertical analysis.

iii) Discussion of four items from the management discussion of the firm that support the conclusion formed in your discussion of the financial results.

Much of this course has concentrated on learning financial statements, mainly as there was not an accounting prerequisite. Because of this concentration, you may find this assignment challenging. Though, if you understand the financial statements, then the horizontal and vertical analysis must (hopefully) be rather intuitive. Such as, if you see sales rise by 20%, then should not you also see net income rise by 20% or more if the managers are effective at controlling costs?  If you see sales rise by 20% and assets rise by 40%, we have to ask why this is happening. It would appear that assets have risen too far given the sales that are generated from those assets—why did this occur?  You may have to research that type of problem and discuss it in your analysis.

You have had some experience with financial ratios through Discussion Board.  I’d suggest that you start your ratio analysis with four ratios found in DuPont equation. If you discover the weakness in one component of DuPont ratios, then it would make sense to look at ratios which are closely related to troublesome ratio. Such as, if you discover that the asset turnover is declining over time, then take a look at some related ratios like the inventory turnover rate or the average collection period. If you discover that the equity multiplier is increasing (indicating greater reliance on debt), then look at some related ratios such as the debt ratio or Times Interest Earned.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M96229

Have any Question? 


Related Questions in Basic Finance

Our data- ow analyses so far do not take advantage of the

Our data- ow analyses so far do not take advantage of the semantics of conditionals. Suppose we find at the end of a basic block a test such as How could we use our understanding of what the test x

1 what are sustainable hr practices and how do they affect

1. What are sustainable HR practices and how do they affect employees? 2. How can HR discover the sustainability sweet spot of an organization when it comes to employment relations?

1 why do self-report scales use many different items that

1. Why do self-report scales use many different items that assess the same conceptual variable? 2. Consider a measure that shows high internal consistency but low test-retest reliability. What can be concluded about the ...

1 what do record date ex-dividend date and payment date

1. What do record date, ex-dividend date, and payment date mean, related to dividends? Why would you expect the price of a stock to drop by the amount of the dividend on the ex-dividend date? What rationale has been offe ...

1 what advantage does drp have over a fair share method of

1. What advantage does DRP have over a fair share method of inventory deployment? 2. Discuss the importance of collaboration in the developing of supply chain inventory strategies. Provide an example. 3. Customer-based i ...

A research concludes that the number of hours of exercise

A research concludes that the number of hours of exercise per week for adults is normally distributed with a mean of 3.5 hours and a standard deviation of 3 hours. (a) Find the 75th percentile for the distribution of exe ...

Look again at figure 83 on page 237 and answer the

Look again at Figure 8.3 on page 237 and answer the following questions. a. Why is the demand curve for foreign exchange downward sloping? b. Why is the supply curve for foreign exchange upward sloping? c. Who would be i ...

Which of the following would be a wash sale explaina you

Which of the following would be a wash sale? Explain. a. You buy a stock at $30. Three weeks later, you sell the stock at $26. Two weeks later, you buy a call on the stock. b. You buy a stock at $40. One month later, you ...

1 define a multinational corporation mnc what additional

1. Define a multinational corporation (MNC). What additional factors must be considered by the manager of an MNC that a manager of a purely domestic firm is not forced to face? 2. Who are the major players in foreign cur ...

The alpha company has issued a total of 15000000 shares of

The Alpha Company has issued a total of 15,000,000 shares of common stock at par(its value to the firm is $15,000,000. The dividend yield is 7%. The company also has $5,000,000 of bonds(also sold at par) with a coupon ra ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen