Swamped with your writing assignments? Take the weight off your shoulder!
You have been chosen to join a team of consultants at Maryland Creative Solutions (MCS). Congratulations on your hiring! The group you will be working with has a history of helping transform troubled companies into profitable enterprises with a promising future. Your team is assigned to a client firm, Largo Global Inc. (LGI). LGI’s operational efficiency has declined over the past three years. The company’s board of directors has hired MCS to uncover the underlying issues and make recommendations to turn things around. Project 1: Analyzing Financial Statements Step 1: Prepare for the Project In two weeks, you will meet with your team to discuss the main reasons for LGI’s reduced operational efficiency. You need to prepare for the meeting by reviewing how to perform financial analysis, including common-size, cash flow, and ratio analysis.
Step 2: Review and Practice Maryland Creative Solutions (MCS) has provided you with background material on how its teams approach financial analysis. Using the Project 1 Review and Practice Guide , review the structure and purpose of the income statement and balance sheet. Make sure you also are familiar with the DuPont equation as well as these five groups of financial ratios: liquidity, efficiency, leverage, profitability, and market value. Study how to perform common-size and cash flow analyses. Finally, apply what you have learned so far by completing the exercises referenced in the Project 1 Review and Practice Guide.
You must review the material provided by MCS and do the practice exercises so that you are
prepared to have informed discussions with your team about company financial statements,
understand what the statements reveal about operational efficiency, and
can use this information to make recommendations for improvements.
Complete this review and practice by the end of Week 1. Step 3: Participate in the Required Project 1 Discussion You have finished reviewing the material and performing the exercises but you have some questions. Participate in the Project 1 class discussion. Respond to the two questions below by posting in the discussion; then, respond to two of your classmates’ discussion posts by the end of the week. Discussion
Answer the following questions:
Discuss the concepts that were most challenging for you in the readings and review material. How did the practice exercises help clarify these?
What did you learn that will help you analyze LGI’s financial statements? Step 4: Complete the Analysis Calculation for Project 1 To help you analyze LGI’s financial situation so that you can make recommendations for improvement, you receive an Excel workbook containing the company’s key financial statements. After performing the ratio, common-size, and cash flow analyses, submit your initial findings.
Complete the analysis calculation for the project:
Download the Project 1 Excel Workbook , click the Instructions tab, and read the instructions.
Perform ratio, common-size, and cash flow analyses using the Income Statement and Balance Sheet worksheet in the Excel workbook.
If you would like instructor feedback on this step, follow the instructions below to submit your Excel file to the Assignments folder as a milestone by the end of Week 1. This is optional. If you choose to submit the milestone, you will receive instructor feedback. To distinguish the milestone submission from the file you will submit in Step 5, label your file as follows: P1_milestone_lastname_Calculation_date