Financial Reporting of Analysis

Assignment Requirements

 

Please do the parts highlighted in red on the word document attached. You will find all the numbers you need in the excel spreadsheets.

The company is Merck & Co

PART II:

 

OBTAIN THE ANNUAL REPORT AND COMPLETE

AN INTRACOMPANY ANALYSIS

 

Purpose:

 

• To use resources available to obtain the corporation’s annual report.
• To complete trend analyses and prepare common-size statements.
• To compute common ratios and other summary indicators.
• To prepare a written analysis summarizing the results using appropriate business/accounting terminology.

 

1. Complete trend analyses and prepare common-size statements for both the

            income statement and balance for all years presented.

 

This requirement involves both horizontal and vertical percentage analysis of the

financial statements. Horizontal (“trend”) analysis is a technique for evaluating

financial information over a period(s) of time, i.e., “year-to-year change”.

 

Vertical analysis is a technique which allows the expression of each item within a

financial statement in terms of a percent of an established base, e.g., net sales.

or totalassets. This allows the preparation of “common-size” statements.

 

I will provide an example of the percentage analysis for your project.

 

 

PART II:         [concluded]

 

1. Calculate selected common ratios (to be provided) for all years presented.

 

In order to best complete this requirement, you should refer to the index of the

textbook to refer back to the required indicators. I will assist you in this effort.

 

1. Prepare a well-written summary based on the results of your analyses.

 

            Prepare a separate analysis for (1) the percentage analysis and (2) the ratio

analysis. This should be limited to two (2)-five (5) pages, typed and double-

spaced. The same standards/requirements apply as with Part I.

 

PART III:

 

COMPLETE AN INTERCOMPANY ANALYSIS BY

COMPARISON TO THE INDUSTRIAL NORM

 

Purpose:

 

• To research the primary SIC (Standard Industrial Classification) Code for your company.
• To use resources available to obtain industry averages for commonly-used ratios.
• To compare ratio results to industry averages.
• To prepare well-written report summarizing the results of your analysis.

 

Requirements:

 

1. Obtain the four (4) – digit SIC for your company.

 

The SIC is coding system used to report information on U.S. businesses. It

divides the corporations into 10 major categories, which are further divided

into major groups. The first two (2) refer to the specific business segment.

Many corporations engage in more than one type of business. The primary

SIC code refers to the type of business with the largest volume of sales.

The secondary SIC codes are listed in descending order according to sales

 

The first page of Form 10-K displays the primary SIC code within the initial

company information available at www.sec.gov. Additionally, the Occupational

Safety and Health Administration maintains a SIC search at www.osha.gov.

 

 

PART III: [concluded]

 

1. Obtain industry averages for commonly used ratios.

 

Industry average information is reported by industry title or SICS code. You will

need to compare your company with its industry. Resources for industry average

information includes:

Free online:                 www.finance.yahoo.com

www.moneycentral.msn.com

In print:                        Almanac of Business and Industrial Financial

                                                            Ratios (Troy: Prentice-Hall)

Industry Norms and Key Business Ratios

                                                            (Dun and Bradstreet, Inc.)

Standard and Poor’s Industry Surveys

                                                           

 

1. Prepare a report that summarizes the intercompany comparisons.

 

The report should (1) focus on significant amount, trends, and relationships

for all years presented, (2) compare company ratios to industry averages, and

(3) summarize and comment on the information as related to: liquidity, long-

term solvency, management efficiency, and profitability.

 

In the appendix, appropriately identify and place photocopies or printouts of the

industry average and ratio information used for your report noting the source.

 

1. “Market your services”.

 

Let’s assume that I am in a position to enter the market. I have researched and

found your “project” of interest, among many others in many industries. What is?

your professional opinion? If I select your industry, why should I select your

company? You should identify 3-5 significant points that justify your

recommendation.

 

Remember, this is a proposal. Often too much information is worse than too

little.

 

 

Order Now

http://zelessaywritings.com/order/

 

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.

 

[order_calculator]