ACC 561 LT WK 3 Company and The Managing of Inventory and Accounts COMPLETE THE INFORMATION ABOVE THE LINES ONLY NOT THE ENTIRE ASSIGNMENT… CHECK ATTACHM

ACC 561 LT WK 3 Company and The Managing of Inventory and Accounts COMPLETE THE INFORMATION ABOVE THE LINES ONLY NOT THE ENTIRE ASSIGNMENT… CHECK ATTACHMENTS

Jennifer: Conclusion, second two questions (250 words)

is the company more or less efficient in managing inventory and accounts receivable?
Does profitability improve or decline over the four year period?

Part 2

Jennifer: Intro & Evaluate the financial opportunity presented by the companies. If the team was going to lend money to one of the companies reviewed, which one would it be? Defend the team’s decision by identifying and discussing specific ratios that would be important to a creditor. (150 words)

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this entire assignment is not to be completed

Financial Statement Analysis and Decision Making Activity

Part I

This assignment requires the calculation of four years of ratios for Microsoft. An Excel work book with Microsoft financial information is attached. A trend analysis of the Microsoft ratios is required.

A second sheet in the workbook contains ratios for Apple, Oracle and Cicso. A comparison of the Microsoft current year ratios to these three companies is required to provide answers for the three questions below.

Complete the following:

Using the Microsoft financial statement information provided with the student materials, for the four years in the spreadsheet calculate the following ratios:

1. Current ratio

2. Current cash debt coverage ratio

3. Receivables Turnover ratio (assume all sales are credit sales)

4. Inventory Turnover ratio

5. Debt to Total Assets ratio

6. Times Interest Earned ratio

7. Return on common stockholders’ equity ratio

8. Return on assets ratio

9. Profit margin ratio

10. Price-Earnings ratio

A good approach to this section is to have each team member calculate one of the years so teams can compared calculations for accuracy. Appendix Chapter 13A starting on page 665 shows how to calculate all the ratios for the Chicago Cereal Company.

For the first section of the team paper, in approximately 500 words discuss the trends of the Microsoft ratios:

Is liquidity stronger or weaker over the four year period?
Is the company more or less solvent over the four year period?
Is the company more or less efficient in managing inventory and accounts receivable?
Does profitability improve or decline over the four year period?

Part II

A “ratio summary sheet” is included with the student materials where the ratios for Oracle, Apple and Cisco are entered. Enter the most current year Microsoft ratios into the column provided.

Copy the summary of all the companies’ ratios into a table of ratios into a Word document as the beginning of the second section of the team paper. The table is required in the paper so the reader can see all the ratios with the analysis.

Develop a 700 word evaluation of the four companies in which the team does the following:

Evaluate the financial opportunity presented by the companies. If the team was going to lend money to one of the companies reviewed, which one would it be? Defend the team’s decision by identifying and discussing specific ratios that would be important to a creditor.
Evaluate the investment opportunity presented by the companies. If the team could invest $100,000 in one of the companies, which would the team select? Provide the rationale by identifying and discussing specific ratios that would be important for an investor.
Evaluate the employment opportunity presented by the companies. If the team members could work for any of the companies, which company would the team select based on the company’s financial position? Defend the team’s decision by discussing the ratios as it relates to the overall financial position of the companies.
Overall, which if the companies has the strongest financial position? Which of the companies has the weakest financial position? Refer to the ratios to support the team’s conclusions.

Format the assignment consistent with APA guidelines.

The following files must be submitted:

-The completed Excel worksheet with Microsoft ratios and the ratio summary sheet where the ratios for all four companies are shown.

-The final paper

In Blackboard, only one submission can be made. The team leader for this week needs to saved the final versions of these files to their computer and then upload them for the final submission.

Resources:

Center for Writing Excellence

Reference and Citation Generator

Grammar and Writing Guides

Learning Team Toolkit As of November 24, 2018
Cisco
Current ratio
Current cash debt coverage ratio
Inventory turnover ratio
Receivables Turnover ratio
Debt to Total Assets ratio
Times Interest Earned Ratio
Return on Common stockholders’
equity ratio
Return on Assets ratio
Profit Margin Ratio
Price Earnings Ratio
Current stock price
2.29
0.50
10.82
9.22
60.28%
14.83
0.20%
0.09%
0.22%
2273.00
45.46 $
Apple
Microsoft
Oracle
1.12
0.71
37.17
12.94
70.70%
23.50
3.96
0.71
23.15
7.53
66.32%
7.37
49.36%
16.07%
22.41%
12.82
153.92
7.61%
2.81%
9.60%
52.95
49.24
$
Financial Statement Information and Ratio Calculations
Company Name: Microsoft
Financial Statement Information
Current assets
Current liabilities
Inventory
Costs of Sales
Cash provided by operating activities
Net Sales
Account receivables
Total liabilities
Total assets
Provision for Income Taxes
Interest expense
Net income
Preferred dividend
Common stockholders equity
Market Value per share
Earnings per share (basic)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2018
169,662
58,488
2,662
38,353
43,884
110,360
26,481
176,130
258,848
19,903
2,733
16,571
82,718
105.00
2.15
2018
Current ratio
Current cash debt coverage ratio
Inventory turnover ratio
Receivables Turnover ratio
Debt to Total Assets ratio
Times Interest Earned Ratio
Return on Common stockholders’ equity
ratio
Return on Assets ratio
Profit Margin Ratio
Price Earnings Ratio
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2017
162,696
55,745
2,181
34,261
39,507
96,571
22,431
162,601
250,312
4,412
2,222
25,489
87,711
69.84
3.29
2017
2.90
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2016
139,660
59,357
2,251
32,780
33,325
85,320
18,277
121,697
193,694
2,953
1,243
16,798
71,997
49.94
2.12
2016
2.92
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2015
122,797
49,647
2,902
33,038
29,668
93,580
17,908
94,389
174,472
6,314
781
12,193
80,083
45.23
1.49
2015
2.35
2.47
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2014
125,800
53,251
2,630
27,078
32,502
86,833
18,500
97,258
185,123
5,746
597
22,074
75,864
37.68
2.66
I have put the first formula in cell B28 for you. Use formulas for the other ratios.
2014
Not required
”
”
”
”
”
”
”
”
”
The cells for each ratio must contain a formula using the
amounts obtained from the financial statements above.
Do not hard code the answers into the cells as I cannot see
how you calculated the ratios.
PARTIAL CREDIT IS NOT AVAILABLE IF THE RATIO CELLS ARE HARD CODED
AND DO NOT CONTAIN FORMULAS
ACC 561 LT Tootsie Roll Analysis Paper
Week 3
Criterion
Unsatisfactory
Satisfactory
Knowledge of Course Concepts (75%–7.5 points)
Part I–Ratio Calculations and Review
Exceptional
Requirement 1: Calculation and accuracy of the
Microsoft ratios.
Demonstrates a level of
Demonstrates a level
knowledge that is below the of knowledge that
requirement
meets the
requirement
Demonstrates a level of
knowledge that exceeds the
requirement and is well
supported
Requirement 2: Trend analysis of the Microsoft
ratios
Demonstrates a level of
Demonstrates a level
knowledge that is below the of knowledge that
requirement
meets the
requirement
Demonstrates a level of
knowledge that exceeds the
requirement and is well
supported
Poss.
20
12.5
Part II–700-1000 Word Paper
Requirement 1: Evaluate the financial opportunity
presented by the companies. If the team was
going to lend money to one of the companies
reviewed, which one would it be? Defend the
team’s decision by identifying and discussing
specific ratios that would be important to a
creditor.
Requirement 2: Evaluate the investment
opportunity presented by the companies. If the
team could invest $100,000 in one of the
companies, which would the team select?
Provide the rationale by identifying and
discussing specific ratios that would be important
for an investor.
Requirement 3: Evaluate the employment
opportunity presented by the companies. If the
team members could work for any of the
companies, which company would the team select
based on the company’s financial position?
Defend the team’s decision by discussing the
ratios as it relates to the overall financial position
of the companies.
Requirement 4: Overall, which if the companies
has the strongest financial position? Which of
the companies has the weakest financial
position? Refer to the ratios to support the
team’s conclusions.
Demonstrates a level of
Demonstrates a level
knowledge that is below the of knowledge that
requirement
meets the
requirement
Demonstrates a level of
knowledge that exceeds the
requirement and is well
supported
Demonstrates a level of
Demonstrates a level
knowledge that is below the of knowledge that
requirement
meets the
requirement
Demonstrates a level of
knowledge that exceeds the
requirement and is well
supported
Demonstrates a level of
Demonstrates a level
knowledge that is below the of knowledge that
requirement
meets the
requirement
Demonstrates a level of
knowledge that exceeds the
requirement and is well
supported
Demonstrates a level of
Demonstrates a level
knowledge that is below the of knowledge that
requirement
meets the
requirement
Demonstrates a level of
knowledge that exceeds the
requirement and is well
supported
10.6
10.6
10.6
10.7
Written Communication (15%–1.5 points)
Demonstrate Quality and Effectiveness in Written Written communication is Written
ineffective, with numerous communication is
Communication
spelling and grammatical
effective
errors or poorly constructed
sentences
In addition to meeting the
requirements of satisfactory,
the paper is engaging to the
reader with concise and clear
communication
Format, Style & Citation Standards (10%–1 point)
Numerous errors in format, Few errors in format, Virtually no errors in format,
Adhere to University of Phoenix Writing Style
style, or reference citation style, or reference
style, or reference citation
(APA) Requirements for a Title Page, In-text
citation
Citations, and a Reference Page Only
Final Score==>
15
10
100

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