GROUP PROJECT ASSIGNMENT

ACC 2070-09, CRN# 32329: FINANCIAL ACCOUNTING FOR DECISION MAKING

Tuesdays & Thursdays: 5:30pm – 6:45pm

 

 

 

 

REQUIRED:

 

I. As a group, select a business that you will write a business plan projecting 3-5 years

ahead and outlines the route a company intends to take to grow revenues. Use U.S. Small Business Administration (“SBA”) guidelines:

· https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan

 

II. As a group, select one publicly traded company that aligns to your business. Analyze and report on this company. Then, explain why or why not you would buy the company’s stock. There are various websites you can use to obtain the information required for this project. The following are suggested resources:

· Nasdaq.com

· http://money.cnn.com/data/markets/

· Edgar (www.SEC.gov/edgar.shtml)

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TOTAL POINTS = 75

 

I. Your business plan should contain the following information as recommended by SBA: (40 points)

· Executive Summary (1 pts)

· Company Description (1 pts)

· Market Analysis (1 pts)

· Organization & Management (1 pts)

· Service or Product Line (1 pts)

· Marketing & Sales (1 pts)

· Funding Request (1 pts)

· Financial Projections (11 pts: Balance Sheet (1-2 years) 9 pts, Income Statement (3 years) 10pts, Cash Flow Statements (1 year) 11pts). Note: for industry level comparison use Bizstats – http://www.bizstats.com/

· Appendix (1 pts)

 

 

 

 

II. Your analysis and report on the publicly traded company using 10K, Press release, and other information should contain the following information: (35 points)

 

1. A description of each company’s products and markets (primary lines of business), location of the corporate headquarters. (2.5 pts)

2. The names, age and tenure of the CEO and CFO, compensation of the CEO and CFO; the name of the public accounting firm that conducts its audit and the fees paid for the audit. (2.5 pts)

3. What was the key message from the most recent press release? At least one interesting quote from either the CEO or the CFO in the latest press release and explain why the quote interesting. (5 pts)

4. A brief analysis of any recent important issues (within 2-year period) that may either positively or negatively affect the company’s future stock performance (5 pts)

· Legal proceedings / Litigation

· Market Risk / Environmental factors

· Other factors specific to the company’s industry, competition, etc.

5. Stock closing price for each day for 5 days from April 4, 2022 – May 6, 2022. (5 pts)

· The stock market regular session closes at 1pm PST (Pacific Time!) each day. You should obtain the stock’s closing price after 1pm, but before 6am the next morning.

6. Price-Earnings Ratio (PE Ratio) for each day for 5 days from April 4, 2022 – May 6, 2022. (5 pts)

· See above instructions for Stock Closing Price. Obtain PE Ratio from the same website when you are obtaining closing price data.

· PE Ratio is sometimes called Trailing P/E (it is different from Forward P/E).

7. Financial ratios and interpretation / explanation for each of the following (5 pts):

· Current Ratio

· Debt to Equity Ratio

· Earnings Per Share

· Gross Profit Margin

· Dividend Paid Per Share

8. A summary leading to a recommendation of why or why not you would buy the company’s stock. (5 pts)

Your project should be presented in the following formats:

I. Hard-copy formal written report including any relevant charts and graphs and APA style citation; 5-10 pages. (NO PLAGIARISM)

 

EXTRA CREDIT (10 points):

An oral presentation with visual aids presenting your company showing:

1). Summary of business plan (company description, service or product line, financial statements)

2). Summary of publicly traded company

 

Note: all group members will complete a confidential peer review of other group members.

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