Discuss the following scenario: Staff members from the marketing department of your firm are doing a splendid job selling products to customers.
DQ1 Contents of an Annual Report
Discuss the following scenario: Staff members from the marketing department of your firm are doing a splendid job selling products to customers. Many of the customers are so pleased that they are also buying shares in the company’s stock, which means that they receive a copy of the firm’s annual report. Unfortunately, questions sometimes arise that the marketing staff members are woefully inadequate at answering. Technical questions about the firm’s financial condition and performance are referred to the chief financial officer, but the director of marketing has asked you to write a memo in which you explain the key elements in an annual report so that marketing representatives are better prepared to respond to questions of a more general nature.
For your initial post, write a clear, concise memo (no more than 250 words) that describes the contents of an annual report so marketing personnel can understand the basic requirements of an annual report. Reference this week’s readings and lecture to help organize and explain your thoughts. In addition, answer the following questions:
Do you think all marketing staff members should be equipped to speak with the public about the firm’s financial matters?
What are some of the benefits of improving employee financial literacy?
Respond to at least two of your classmates’ posts.
DQ2 Financial Statement Analysis
The financial statement analysis is due in Week Six. To help you begin your preparation of this work, select a company that you will do the analysis of. Write at least a 200 word summary identifying the firm that you selected, summarizing why you selected it, and explaining the items that a financial analyst might find useful within its Annual Report.
Additionally, read the Forbes article: “12 Lessons from the Warby Parkers Annual Report (Links to an external site.)” and explain which of these 12 lessons may apply to your company selection.
OMM622 Financial Decision-Making
Week 2 Discussion
DQ1 The Balance Sheet
Referencing this week’s readings and lecture, what information is provided in the balance sheet? What is a common-sized balance sheet and how do you create one? For your final project company, does anything stand out on the balance sheet?
DQ2 Understanding the Notes to the Balance Sheet
Your friend, Liz, loves to shop at Target and is now interested in investing in the company. Tom, another friend, has told her that Target’s debt structure is risky with obligations of nearly 74% of total assets. Liz sees that debt on the balance sheet is 65% of total assets and is confused by Tom’s comment. Write an explanation to Liz discussing the debt structure of Target and why Tom thinks Target is risky. Be sure to explain clearly what information appears on financial statements, as well as what information does not appear directly on the financial statements. Use the information below in your discussion.
At fiscal year-end February 2, 2008, Target Corporation had the following assets and liabilities on its balance sheet (in millions):
Current liabilities $11,782
Long-term debt 15,126
Other liabilities 2,345
Total assets 44,560
Target reported the following information on leases in the notes to the financial statements:
Total rent expense was $165 million in 2007, $158 million in 2006, and $154 million in 2005, including percentage rent expense of $5 million in 2007, 2006, and 2005. Most long-term leases include one or more options to renew, with renewal terms that can extend the lease term to more than 50 years. Certain leases also include options to purchase the leased property.
Future minimum lease payments required under non-cancellable lease agreements existing at February 2, 2008, were:
Future Minimum Lease Payments (in Millions) Operating Leases Capital Leases
2008 $ 239 $ 12
2009 187 16
2010 173 16
2011 129 16
2010 123 17
After 2010 2, 843 155
Total future minimum lease payments $3694 (a) $232
Less: Interest (b) (105)
Present value of minimum capital lease payments $127 (c)
(a) Total contractual lease payments include $1,721 million related to options to extend lease terms that are reasonably assured of being exercised, and also include $98 million of legally binding minimum lease payments for stores that will open in 2008 or later.
(b) Calculated using the interest rate at inception of each lease.
(c) Includes current portion of $4 million.
OMM622 Financial Decision-Making
Week 3 Discussion
DQ1 Income Statement
Referencing this week’s readings and lecture, address the following:
What are the two causes of an increasing or decreasing sales number?
Discuss all the reasons that might explain an increase or decrease in gross profit.
DQ2 Analyzing an Income Statement
Income statements are presented in the table below for the Elf Corporation for the years ending December 31, 2010, 2009, and 2008. Write a one-paragraph analysis of Elf Corporation’s profit performance for the period. Create a common-sized income statement for the three years. What conclusions can you draw from the different parts of the statement? What are the causes and effects of Elf’s performance for those three years?
Elf Corporation Income Statements for the Years Ending December 31
(in millions) 2010 2009 2008
Sales $700 $650 $550
Cost of goods sold 350 325 275
Gross profit 350 325 275
Operating Expenses:
Administrative 100 100 100
Advertising and marketing 50 75 75
Operating profit $200 $150 $100
Interest expense 70 50 30
Earnings before tax $130 $100 $ 70
Tax expense (50%) 65 50 35
Net income $ 65 $ 50 $ 35
OMM622 Financial Decision-Making
Week 4 Discussion
DQ1 The Statement of Cash Flows
Referencing this week’s readings and lecture, describe the following terms as they relate to the statement of cash flows: cash, operating activities, investing activities, and financing activities. What can creditors, investors, and other users glean from an analysis of the statement of cash flows?
DQ2 Analyzing the Statement of Cash Flows
Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009.
(in thousands) 2009 2008
Net income $ 316,354 $ 242,329
Noncash charges (credits) to income
Depreciation and amortization 68,156 62,591
Deferred taxes 15,394 22,814
$ 399,904 $ 327,734
Cash Provided (Used) by Operating Assets and Liabilities:
Receivables (288,174) (49,704)
Inventories (159,419) (145,554)
Other current assets (1,470) 3,832
Accounts payable, accrued liabilities 73,684 41,079
Total Cash Provided by Operations $ 24,525 $ 177,387
Investment activities
Additions to plant and equipment (94,1760) (93,136)
Other investment activities 14,408 (34,771)
Net investment activities ($ 79,768) ($ 127,907)
Financing activities
Purchases of treasury stock (45,854) (39,267)
Dividends paid (49,290) (22,523)
Net changes in short-term borrowing 125,248 45,067
Additions to long-term borrowings 135,249 4,610
Repayments of long-term borrowings (250,564)
Net financing activities $ 165,353 ($ 262,677)
Increase (decrease) in cash $ 110,110 ($ 213,197)
Beginning cash balance 78,114 291,311
Ending cash balance $ 188,224 $ 78,114
OMM622 Financial Decision-Making
Week 5 Discussion
DQ1 The Quality of Financial Information
Referencing this week’s readings and lecture, describe the quality issues related to reporting revenue. What is the importance of understanding various inventory valuation methods in determining the quality of reported profits?
DQ2 Conflicts with GAAP
Even though firms follow the accounting rules (GAAP) when presenting their financial statements, it is still possible for conflicts of interest to exist between what management wants investors and creditors to see and the economic reality of transactions. Explain how this can occur.
OMM622 Financial Decision-Making
Week 6 Discussion
DQ1 Financial Ratios
Referencing this week’s readings and lecture, what are the limitations of financial ratios? Classify your answer into at least the following categories: liquidity ratios, activity ratios, leverage ratios, and profitability ratios.
DQ2 Financial Analysis
R.E.C. Inc.’s staff of accountants finished preparing the financial statements for 2010 and will meet next week with the company’s CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year’s annual report. Write a paragraph in which you present the main idea(s) you think the company should present to shareholders in the annual report. Why do you think those ideas should be included?
OMM622 Financial Decision-Making
Week 1 Assignment
10-K Ford Motor Company
Review Ford Motor Company’s Form 10-K (Links to an external site.) for 2012. Explain the purpose of a company’s 10-K and how it interprets the firm’s financial strength. Write a description of three important items, including their significance to stakeholders, that you learned from reading Ford Motors Company’s 10-K for 2012.
Your paper must be two to three pages in length (not including the title and reference pages) and formatted according to APA style as outlined in the Ashford Writing Center. It must include citations and references for the text and at least two scholarly sources from the Ashford University Library.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
OMM622 Financial Decision-Making
Week 2 Assignment
Balance Sheet – Ford Motor Company
In a two- to three-page paper (not including the title and reference pages), explain the purpose of a balance sheet and analyze Ford Motor Company’s balance sheet from its 2012 Annual Report (Links to an external site.). In your analysis, you must determine the financial ratios and compare them to industry standards.
Your paper must be formatted according to APA style as outlined in the Ashford Writing Center, and it must include citations and references for the text and at least two scholarly sources from the Ashford University Library.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
OMM622 Financial Decision-Making
Week 3 Assignment
Income Statement – Ford Motor Company
In a two- to three-page paper (excluding the title and reference pages), explain the purpose of an income statement and how it reflects the firm’s financial status. Include important points that an analyst would use in assessing the financial condition of the company. Also, analyze Ford Motor Company’s income statement from its 2012 Annual Report (Links to an external site.).
Your paper must be formatted according to APA style as outlined in the Ashford Writing Center, and it must include citations and references for the text and at least two scholarly sources from the Ashford University Library.Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
OMM622 Financial Decision-Making
Week 4 Assignment
Cash Flow Statement – Ford Motor Company
In a two- to three-page paper (not including the title and reference pages), explain the purpose of a cash flow statement and how it reflects the firm’s financial status. Include important points that an analyst would use in assessing the financial condition of the company. Also, analyze Ford Motor Company’s cash flow from its 2012 Annual Report (Links to an external site.).
Your paper must be formatted according to APA style as outlined in the Ashford Writing Center, and it must include citations and references for the text and at least two scholarly sources from the Ashford University Library.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
OMM622 Financial Decision-Making
Week 5 Assignment
Auditing
Auditors have come into a department as part of a company-wide audit prior to issuing an audit opinion for the company’s financial reports. In a one- to two-page paper (not including the title and reference pages), explain what the staff should expect the auditors to do. Be sure to include the requirements of the Sarbanes Oxley Act in your explanation.
Your paper must be formatted according to APA style as outlined in the Ashford Writing Center, and it must include citations and references for the text and at least two scholarly sources from the Ashford University Library.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
OMM622 Financial Decision-Making
Week 6 Assignment
Financial Statement Analysis
Prepare an eight- to ten-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on the financial statements of your chosen company:
Provide a background of the firm, industry, economy, and outlook for the future.
Analyze the short term liquidity of the firm.
Analyze the operating efficiency of the firm.
Analyze the capital structure of the firm.
Analyze the profitability of the firm.
Conclude with recommendations for the future analysis of the company (trend analysis).
Writing the Final Paper
The paper
Must be eight to ten double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.).
Must include a separate title page with the following:
Title of paper
Student’s name
Course name and number
Instructor’s name
Date submitted
Must begin with an introductory paragraph that has a succinct thesis statement.
Must address the topic of the paper with critical thought.
Must end with a conclusion that reaffirms your thesis.
Must use at least three scholarly sources from the Ashford University Library, in addition to the text.
Must document all sources in APA style as outlined in the Ashford Writing Center.
Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
