Project Assignment #3

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Project Assignment 3: Ratios

You will submit one Word file

(#1. cover sheet, #6. financial statements, & #7. team contributions)

AND

one Excel file (ratios #2-5)

Total points = 40

Note: Group Project Assignments 3 and 4 are worth a substantial portion of your Group Project grade; make sure to give these assignments your utmost attention. Ask questions if you are confused or if you need more help. Work as a team and make sure not to wait to the last minute. It is obvious when an assignment is rushed and it can greatly affect your grade. Project Managers should help coordinate in getting assignments started. Ensure all team members are using the same financial statements to ensure the accuracy of your ratios.

1. Cover Page

Include the names of students who participated in the completion of the assignment; do not include names of students who did not participate.

2. Using a spreadsheet such as Excel, compute the following ratios for your company’s three most recent years (calendar or fiscal, depending on your company). Show all results rounded to one decimal. All computations must be determined using Excel formulas. Typing computational results in a cell will result in zero points.

It may help your team organization to create a different sheet in the file for each group of ratios. Check that you are using the correct formulas from the book as using formulas found elsewhere online may result in variations that will cost you points. Refer to Chapter 13: pages 536-543 of the textbook or eBook.

Liquidity & Efficiency: (10 points)

1. Current Ratio
2. Acid Test Ratio
3. Inventory Turnover (show as a number of times)
4. Total Asset Turnover (show as a number of times)

3. Solvency

1. Debt Ratio (show as a percent)
2. Equity Ratio (show as a percent)
3. Debt-to-Equity

4. Profitability: (10 points)

Show all as percentages.

1. Profit Margin
2. Gross Margin
3. Return on Assets
4. Return on Equity

5. Market Prospects: (5 points)

1. Price Earnings Ratio
2. Dividend Yield (show as a percent)

6. Financial Statements (remember no third party statements)

• Balance Sheets for the three most recent years, which were used to calculate the ratios above.
• Income Statements for the three most recent years, which were used to calculate the ratios above.

Remember that the financial statements for your company will either be calendar or fiscal years.

7. Contribution Statement

List each student name and what he/she contributed to the assignment.

Requirements:

1. Using Word, include your cover page with the names of students who participated in the completion of the assignment. Do not include names of students who did not participate. Do not include names of students who did not participate.
2. Label your work in Excel! Type the assignment question number (such as, 2.b.), the label (such as, Acid Test Ratio), and then your results for the three years (which are also labeled).
3. At least two people should verify Excel amounts used in calculations with the financial statement accounts and compute all calculations. All team members should check each other’s work to make sure there are no errors.If your numbers are incorrect, your comments, conclusions, and final recommendations (Assignment #5) are going to be debatable at best.
4. All computations must be determined using Excel formulas. Typing computational results in a cell will result in zero points for the assignment.
5. Before submitting your Excel document, use Control~ to ensure that all computations have been made using formulas.
6. Include the Balance Sheets and Income Statements from the Annual Report on the company’s website for the three years so I can check your answers. Copy/paste them in a Word document and submit them with your cover page & contribution statement.

If the financial statements will not format into the document correctly, submit them as a separate PDF file with the assignment.

Do not use hyperlinks.

Do not use financial statements from a third party, such as Google Finance. Using third-party-provided financial statements will result in zero points for the assignment. They MUST come from the company’s website.

1. Using Word, include a listing of each student’s name with his/her contribution made to this assignment. Submit it with your cover page and financial statements.

Note:

Late assignments are accepted no later than the day following the deadline and carry an automatic 20% penalty.

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