B6022 Module 1 Assignment 3 Calculating Financial Ratios

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ital to any ratio analysis are the steps of gathering financial data and selecting and calculating relevant ratios. This assignment provides you with an opportunity to do just that.

Download a companyâ&#x20AC;&#x2122;s balance sheet and income statement from one of the many sites where financials are available, such as Zacks Investment Research or MarketWatch. Choose five financial ratios, one from each of the five categories described in Chapter 3 of Brigham and Ehrhardt (i.e., liquidity, asset management, financial leverage, profitability, and market value) and look at them over a three-year period. Put your findings in a table with the years across the top (horizontal axis) and the ratios along the side

(vertical axis). What do the findings tell you about the financial health of the company? How does your selected company compare to the industry? Calculate each ratio using the information from the balance sheet and income statement. Write a 2â&#x20AC;&#x201C;3-page paper that reports your findings. ******************************

B6022 Module 1 Assignment 4 Financial Ratio Analysis

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B6022 Module 2 Assignment 2 Time Value of Money

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When the Genesis and Sensible Essential teams held their weekly meeting, the time value of money and its applicability yielded an extremely stimulating discussion. However, most of the team members from Genesis were very perplexed. Sensible Essentials decided the most expedient way to demonstrate how interest rates as well as time impact the value of money was to use examples. You have been asked to prepare a report analyzing your findings of the three example calculations listed below.

In this assignment, you will do the following:

Calculate the future value of \$100,000 ten years from now based on the following annual interest rates: 2% 5% 8% 10%

Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows: Year 1 = \$100,000 Year 2 = \$150,000 Year 3 = \$200,000 Year 4 = \$200,000 Year 5 = \$150,000 Years 6-10 = \$100,000

Calculate the present value of the cash flow stream in problem 2 with the following interest rates: Year 1 = 8% Year 2 = 6% Year 3 = 10% Year 4 = 4% Year 5 = 6% Years 6-10 = 4

Perform your calculations in an Excel spreadsheet. Copy the calculations in a Word document. In addition, write a 2- to 3-page executive summary in Word format. Your summary should reflect a proper analysis of your findings, including a comparison and contrast of data. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M2_A2.doc.

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B6022 Module 3 Assignment 2 LASA 1 Genesis Energy Cash Position Analysis

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The Genesis Energy operations management team is now preparing to implement the operating expansion plan. Previously, the firmâ&#x20AC;&#x2122;s cash position did not pose a challenge. However, the planned foreign expansion requires Genesis Energy to have a reliable source of funds for both short-term and long-term needs.

One of Genesis Energyâ&#x20AC;&#x2122;s potential lenders tells the team that in order to be considered as a viable customer, Genesis Energy must prepare and submit a monthly cash budget for the current year and a quarterly budget for the subsequent year. The lender will review the cash budget and determine whether or not Genesis Energy can meet the loan repayment terms. Genesis Energyâ&#x20AC;&#x2122;s ability to repay the loan depends not only on sales and expenses but also on how quickly the company can collect payment from customers and how well it manages its supplier terms and other operating expenses. The Genesis Energy team members agreed that being fully prepared with factual data would allow them to maximize their position as well as negotiate favorable financing terms.

The Genesis Energy management team held a brainstorming session to chart a plan of action, which is detailed here.

Evaluate historical data and prepare assumptions that will drive the planning process.

Produce a detailed cash budget that summarizes cash inflow, outflow, and financing needs.

Identify and compare interest rates, both short-term and long-term, using debt and equity.

Analyze the financing mix (short/long) and the cost associated with the recommendation.

Since this expansion is critical to Genesis Energy expanding into new overseas markets, the operations management team has been asked to prepare an executive summary with supporting details for Genesis Energyâ&#x20AC;&#x2122;s senior executives.

Working over a weekend, the management team developed realistic assumptions to construct a working capital budget.

Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research

Other cash receipt: Rental income \$15,000 per month

Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 50 percent of sales

Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase

Selling and marketing expense: Five percent of sales

General and administrative expense: Twenty percent of sales

Interest payments: \$75,000â&#x20AC;&#x201D;Payable in December

Tax payments: \$15,000â&#x20AC;&#x201D;Quarterly due on 15th of April, July, October, and January

Minimum cash balance desired: \$25,000 per month

Cash balance start of month (December): \$15,000

Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit

Dividend payment: None

Based on this information, do the following:

Using the Cash Budget spreadsheet, calculate detailed company cash budgets for the forthcoming and subsequent years. Summarize the sources and uses of cash, and identify the external financing needs for both the forthcoming and subsequent years.

Download this Excel spreadsheet to view the companyâ&#x20AC;&#x2122;s cash budget. You will calculate the companyâ&#x20AC;&#x2122;s monthly cash budget for the forthcoming year and quarterly budget for the subsequent year using this information.

In an executive-level report, summarize the company's financing needs for the forecast period and provide your recommendations for financing the planned activities. Be sure to comment on the following:

Your recommended financing solution and cost to the firm: If Genesis Energy needs operating cash, how should it fund this need? Are there internal policy changes with regard to collections or payables management you would recommend? What types of external financing are available?

Your concerns associated with the firm's cash budget. Is this a sign of weak sales performance or poor cost control? Why or why not?

Write a 7-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc.

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B6022 Module 4 Assignment 2 Cost of Debt and Equity

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The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital. Nevertheless, the guidelines failed to fully demonstrate the essence of the cost of debt and equity, which is the required rate of return expected by suppliers of funds.

You are the Genesis accountant and have taken a class recently in financing. You agree to prepare a PowerPoint presentation of approximately 6â&#x20AC;&#x201C;8 minutes using the examples and information below:

Debt: Jones Industries borrows \$600,000 for 10 years with an annual payment of \$100,000. What is the expected interest rate (cost of debt)?

Internal common stock: Jones Industries has a beta of 1.39. The risk-free rate as measured by the rate on short-term US Treasury bill is 3 percent, and the expected return on the overall market is 12 percent. Determine the expected rate of return on Jones’s stock (cost of equity). Here are the details:

Jones Total Assets

\$2,000,000

Long- & short-term debt \$600,000

Common internal stock equity \$400,000

New common stock equity \$1,000,000

Total liabilities & equity \$2,000,000

Develop a 10–12-slide presentation in PowerPoint format. Perform your calculations in an Excel spreadsheet. Cut and paste the calculation into your presentation. Include speaker’s notes to explain each point in detail.

Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.ppt ******************************

B6022 Module 5 Assignment 1 Performance Measurements

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Both the Genesis and Sensible Essentials teams believe that the client engagement was very successful. All the critical learning tools were fully explored. However, the operations management team believes there were several topics that were not covered but are important to their respective disciplines. These topics centered primarily on selecting/developing meaningful and rational measurements of performance as they relate to measuring the success of the companyâ&#x20AC;&#x2122;s expansion strategy.

The financial indicators are important, but the team is also concerned about more forward-looking measures that might reflect product quality,

customer satisfaction, internal process efficiency, performance, and perhaps, other strategic indicators.

Based on your understanding of the concepts covered in this course, address the following:

Develop and describe a strategic measurement â&#x20AC;&#x153;scorecardâ&#x20AC;? that incorporates the financial measures applied in this course. Consider the prospect of new equity owners and explain why this is important.

Describe the non-financial measures that should be considered and are important to the success of an organization. Explain why these measures should also be considered in the strategic initiatives of the organization ******************************

B6022 Module 5 Assignment 2 Required Assignment 2 Genesis Energy Capital Plan Report

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The Genesis Energy operations management team, nearing completion of its agreement with Sensible Essentials, was asked by senior management to present a capital plan for the operating expansion. The capital plan was not to be a wish list but an analysis of the necessary expenditures to successfully establish a fully equipped operating facility overseas.

In addition, senior management requested meaningful financial and operating metrics to ensure that the performance objectives for the facility were being met. The operations management team was given five days to accomplish the following:

Calculate the firmâ&#x20AC;&#x2122;s WACC.

Prepare and analyze each planned capital expenditure.

Evaluate, rank, and recommend the capital expenditures according to beneficial value to the organization, using the evaluation tools NPV, payback, and IRR. Evaluation, ranking, and recommendations should be by category of expenditures. For example, facility, equipment 1, 2, and 3, and inspection.

Using the selected choices in part three, calculate the full cost of establishing a fully equipped facility. This would include the facility,

equipment 1, 2, and 3, and inspection. In addition, calculate the payback, NPV, and IRR for the completed facility.

Construct and recommend between three and five metrics to measure the performance of the organization. At least one metric should be dividend decision-making driven.

Prepare an executive summary along with a separate document showing the calculations.

Part I

Following the example of the operations management team, do the following:

Using the information provided in the spreadsheet, analyze Genesis Energyâ&#x20AC;&#x2122;s project options. Then, calculate the periodic and cumulative net cash flows for each potential project and its associated options. Please note that there are five projects (facility, equipment pieces 1, 2, and 3, and internal inspection), and that each project offers multipleconfiguration options (facility size, equipment type, etc.).

Evaluate, rank, and recommend a specific option for each capital project according to beneficial value to the organization, using the evaluation tools NPV, payback, and IRR.

Construct and recommend between three and five metrics to measure the performance of the new operating strategy. At least one metric should reflect dividend policy as it relates to rewarding shareholders.

Prepare an executive summary describing your recommendations for each project and the overall cost, net cash flows, and expected returns of the operating configuration that you recommend. Be sure to justify your recommendations in terms of the investment criteria applied in Step 3 above. Be sure to report the full cost of the facility as it is configured per your recommendations. Present and justify your operating strategy performance metrics.

Your complete report should include all of your calculations as appendices (5 pages, or 1 page for each project).

Part IIâ&#x20AC;&#x201D;Executive Summary Presentation

Because of limited resources in an era of plentiful opportunities, companies must carefully select investments. You analyzed Genesis

Energy’s expansion plans and explained your findings in M5: Assignment 1.

This assignment is based on those findings. In this assignment, you will create a PowerPoint presentation that will include the following information:

An executive summary of your findings from M5: Assignment 1. Be sure to adhere to the following:

The presentation should be approximately 6–8 minutes (or 10–12 slides).

A statement of the problem or topic is included.

A concise analysis of the findings is included.

Specific details from M5: Assignment 1 to highlight or support the summary are incorporated.

Develop a 10–12-slide presentation in PowerPoint format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M5_A2.ppt. ******************************

# B6022 Inspiring Innovation--tutorialrank.com

For more course tutorials visit www.tutorialrank.com B6022 Module 1 Assignment 3 Calculating Financial Ratios ital to any ratio analysis...

# B6022 Inspiring Innovation--tutorialrank.com

For more course tutorials visit www.tutorialrank.com B6022 Module 1 Assignment 3 Calculating Financial Ratios ital to any ratio analysis...