Financial Statement Analysis & Forecasts The objective of this team project is to use what you have learned to evaluate the overall financial health of a c

Click here to Order a Custom answer to this Question from our writers. It’s fast and plagiarism-free.

 The objective of this team project is to use what you have learned to evaluate the overall financial health of a company using ratio analysis. The team will also use financial data to compare companies within the same industry, calculate projected results, determine if objectives will be met by a company, and recommend a course of action. There are four independent parts to this assignment. 

 

Tablon Inc. is a wholly owned subsidiary of Marbel Co. The philosophy of Marbel’s management is to allow the subsidiaries to operate as independent units. Corporate control is exercised through the establishment of minimum objectives for each subsidiary, accompanied by substantial rewards for success and penalties for failure. The time period for performance review is long enough for competent managers to display their abilities.

Each quarter, the subsidiary is required to submit financial statements. The statements are accompanied by a letter from the subsidiary president explaining the results to date, a forecast for the remainder of the year, and the actions to be taken to achieve the objectives if the forecast indicates that the objectives will not be met.

Marbel management, in conjunction with Tablon management, had set the objectives listed below for the year ending May 31, 2018. These objectives are similar to those set in previous years.

  • Sales growth of 20%
  • Return on stockholders’ equity of 15%
  • A long-term debt-to-equity ratio of not more than 1.0
  • Payment of a cash dividend of 50% of net income, with a minimum payment of at least $400,000

Tablon’s controller has just completed the financial statements for the six months ended November 30, 2017, and the forecast for the year ending May 31, 2018. The statements follow.

After a cursory glance at the financial statements, Tablon’s president concluded that not all objectives would be met. At a staff meeting of the Tablon management, the president asked the controller to review the projected results and recommend possible actions that could be taken during the remainder of the year so that Tablon would be more likely to meet the objectives.

Required

  1. Calculate the projected results for each of the four objectives established for Tablon Inc. State which results will not meet the objectives by year-end.
  2. From the data presented, identify the factors that seem to contribute to the failure of Tablon Inc. to meet all of its objectives.
  3. Explain the possible actions that the controller could recommend in response to the president’s request.


Team project- Financial Statement Analysis & Forecasts

Due Sunday Week 8

160 Points

The objective of this team project is to use what you have learned to evaluate the overall financial health of a company using ratio analysis. The team will also use financial data to compare companies within the same industry, calculate projected results, determine if objectives will be met by a company, and recommend a course of action. There are four independent parts to this assignment.

Part IV: Projected Results to Meet Corporate Objectives

Tablon Inc. is a wholly owned subsidiary of Marbel Co. The philosophy of Marbel’s management is to allow the subsidiaries to operate as independent units. Corporate control is exercised through the establishment of minimum objectives for each subsidiary, accompanied by substantial rewards for success and penalties for failure. The time period for performance review is long enough for competent managers to display their abilities.

Each quarter, the subsidiary is required to submit financial statements. The statements are accompanied by a letter from the subsidiary president explaining the results to date, a forecast for the remainder of the year, and the actions to be taken to achieve the objectives if the forecast indicates that the objectives will not be met.

Marbel management, in conjunction with Tablon management, had set the objectives listed below for the year ending May 31, 2018. These objectives are similar to those set in previous years.

· Sales growth of 20%

· Return on stockholders’ equity of 15%

· A long-term debt-to-equity ratio of not more than 1.0

· Payment of a cash dividend of 50% of net income, with a minimum payment of at least $400,000

Tablon’s controller has just completed the financial statements for the six months ended November 30, 2017, and the forecast for the year ending May 31, 2018. The statements follow.

After a cursory glance at the financial statements, Tablon’s president concluded that not all objectives would be met. At a staff meeting of the Tablon management, the president asked the controller to review the projected results and recommend possible actions that could be taken during the remainder of the year so that Tablon would be more likely to meet the objectives.

Required

1. Calculate the projected results for each of the four objectives established for Tablon Inc. State which results will not meet the objectives by year-end.

2. From the data presented, identify the factors that seem to contribute to the failure of Tablon Inc. to meet all of its objectives.

3. Explain the possible actions that the controller could recommend in response to the president’s request.


Additional Instructions:

· Because this is a team project, I recommend using Google Docs and/or Sheets to collaborate effectively. Everyone from the team will be able to work on the document concurrently with real-time updates. One team member will need to initially set up the document(s) then they can add people with permission to edit the site as well. The icon (the + symbol next to a person) to do this is located at the top of the page).

· Everyone needs to use their Brandman Gmail accounts when creating and working with the Google documents.

· Once the project is completed, each team member will upload a copy of the final deliverable to Blackboard.

·
Each team member must upload the final project. (If you don’t upload the completed project in Blackboard (Week 8 Assignments folder); you won’t get a grade for it.)

Evaluation Criteria for: Financial Statement Analysis & Forecasts Team Project

Team Project

160 points

WD

144 to 150 Points

Dev

112 to 143 Points

NSW

0 to 142 Points

Part I – Executive Summary (12.5 %)

20 points

20

All requirements of the executive summary are addressed in thorough detail. (Refer to Part I requirements) Makes connections to concepts presented in textbook.

16

All requirements of the executive summary are addressed but more detail is needed. (Refer to Part I requirements) And somewhat connects to the textbook.

10

All requirements of the executive summary are not addressed. There is very little detail presented. (Refer to Part I requirements) Does not show how the concepts connect to textbook.


Part II (31.25%)
50 points

50

9 – 11 of the ratios are calculated correctly. Work is shown for all ratios. Overall assessment of the company is correct.

40

6 – 8 of the ratios are calculated correctly. Work is shown for all ratios. Overall assessment of the company is mostly correct.

25

0 – 5 of the ratios are calculated correctly. Little to no work is shown for all ratios. Overall assessment of the company is generally incorrect.

Part III (25%)

40 points

40

8 – 10 of the ratios are calculated correctly. Work is shown for all ratios. Overall comparison of the company to the industry average is correct. Answer to question 3 is supported by the analysis performed

32

5 – 7 of the ratios are calculated correctly. Work is shown for all ratios. Overall comparison of the company to the industry average is mostly correct. Answer to question 3 is supported by the analysis performed

20

0 – 4 of the ratios are calculated correctly. Little to no work is shown for all ratios. Overall comparison of the company to the industry average is generally incorrect. Answer to question 3 is not supported by the analysis performed

Part IV (31.25 %

50 points

50

Projected results are calculated correctly (work is shown). Correctly identified the factors contributing to the failure of meeting all its objectives. Recommendation(s) is reasonable given the information and calculated results.

40

Projected results are mostly correctly (1 may be incorrect. Work is shown. Mostly identified the factors contributing to the failure of meeting all its objectives. Recommendation(s) is reasonable given the information and calculated results.

25

Projected results are mostly incorrect (little to no work is shown). Incorrectly identified the factors contributing to the failure of meeting all its objectives. Recommendation(s) is/are not reasonable given the information and calculated results.

N S W = Needs Significant Work D = Developing WD = Well Developed

Place your order now for a similar assignment and have exceptional work written by one of our experts, guaranteeing you an A result.

Need an Essay Written?

This sample is available to anyone. If you want a unique paper order it from one of our professional writers.

Get help with your academic paper right away

Quality & Timely Delivery

Free Editing & Plagiarism Check

Security, Privacy & Confidentiality