ACC 557 Assignment 2: You Are an Investment Analyst

As the CFO of your corporation, you are in charge of preparing and analyzing financial statements that will be presented to potential investors and creditors. However, before you can present the financial statements to investors and creditors, you need to prepare the financial statements with supporting analysis. Select one (1) pair of the following companies to conduct your financial statement analysis.Pepsi versus Coca Cola, orAmazon versus eBayWrite an eight to ten (8-10) page paper in which you:Analyze each company’s history, product / services, major customers, major suppliers, and leadership, and provide a synopsis of each company.Identify three (3) profitability ratios that creditors may be interested in. Calculate the ratio for each company, and prepare a report to summarize your findings on the financial health of each company. Also, recommend to management the manner in which they can improve each of the three (3) ratios identified.Summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day, and analyze the impact that these events had on each company’s financial statements. Indicate the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.Analyze each company’s income statement over the past two (2) years, and determine which company outperformed the other. Suggest a way in which the lagging company can improve its income. Support your suggestion with a specific analysis.Analyze each company’s balance sheet. Prepare a vertical analysis for each company, interpret the results, and write a financial report. Also, suggest the manner in which the company that is not performing well can improve its balance sheet in order for it to be attractive to potential investors.Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.Your assignment must follow these formatting requirements:Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.The specific course learning outcomes associated with this assignment are:Prepare and analyze financial statements including the balance sheet, income statement, and statement of cash flow according to GAAP and IFRS.Calculate financial ratios, interpret results, and draw conclusions.Use technology and information resources to research issues in financial accounting.Write clearly and concisely about financial accounting using proper writing mechanics.Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.Points: 320Assignment 2: You Are an Investment AnalystCriteriaUnacceptableBelow 70% FFair70-79% CProficient80-89% BExemplary90-100% A1. Analyze each company’s history, product / services, major customers, major suppliers, and leadership, and provide a synopsis of each company.Weight: 15%Did not submit or incompletely analyzed each company’s history, product / services, major customers, major suppliers, and leadership; did not submit or incompletely provided a synopsis of each company.Partially analyzed each company’s history, product / services, major customers, major suppliers, and leadership; partially provided a synopsis of each company.Satisfactorily analyzed each company’s history, product / services, major customers, major suppliers, and leadership; satisfactorily provided a synopsis of each company.Thoroughly analyzed each company’s history, product / services, major customers, major suppliers, and leadership; thoroughly provided a synopsis of each company.2. Identify three (3) profitability ratios that creditors may be interested in. Calculate the ratio for each company, and prepare a report to summarize your findings on the financial health of each company. Also, recommend to management the manner in which they can improve each of the three (3) ratios identified.Weight: 20%Did not submit or incompletely identified three (3) profitability ratios that creditors may be interested in. Did not submit or incompletely calculated the ratio for each company; did not submit or incompletely prepared a report to summarize your findings on the financial health of each company. Did not submit or incompletely recommended to management the manner in which they can improve each of the three (3) ratios identified.Partially identified three (3) profitability ratios that creditors may be interested in. Partially calculated the ratio for each company; partially prepared a report to summarize your findings on the financial health of each company. Partially recommended to management the manner in which they can improve each of the three (3) ratios identified.Satisfactorily identified three (3) profitability ratios that creditors may be interested in. Satisfactorily calculated the ratio for each company; satisfactorily prepared a report to summarize your findings on the financial health of each company. Satisfactorily recommended to management the manner in which they can improve each of the three (3) ratios identified.Thoroughly identified three (3) profitability ratios that creditors may be interested in. Thoroughly calculated the ratio for each company; thoroughly prepared a report to summarize your findings on the financial health of each company. Thoroughly recommended to management the manner in which they can improve each of the three (3) ratios identified.3. Summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day, and analyze the impact that it had on each company’s financial statements. Indicate the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.Weight: 20%Did not submit or incompletely summarized at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day; did not submit or incompletely analyzed the impact that these events had on each company’s financial statements. Did not submit or incompletely indicated the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.Partiallysummarized at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day; partially analyzed the impact that these events had on each company’s financial statements. Partially indicated the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.Satisfactorilysummarized at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day; satisfactorily analyzed the impact that these events had on each company’s financial statements. Satisfactorily indicated the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.Thoroughlysummarized at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day; thoroughly analyzed the impact that these events had on each company’s financial statements. Thoroughly indicated the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.4. Analyze each company’s income statement over the past two (2) years, and determine which company outperformed the other. Suggest a way in which the lagging company can improve its income. Support your suggestion with a specific analysis.Weight: 15%Did not submit or incompletelyanalyzed each company’s income statement over the past two (2) years; did not submit or incompletely determined which company outperformed the other. Did not submit or incompletely suggested a way in which the lagging company can improve its income. Did not submit or incompletely supported your suggestion with a specific analysis.Partiallyanalyzed each company’s income statement over the past two (2) years; partially determined which company outperformed the other. Partially suggested a way in which the lagging company can improve its income. Partially supported your suggestion with a specific analysis.Satisfactorilyanalyzed each company’s income statement over the past two (2) years; satisfactorily determined which company outperformed the other. Satisfactorily suggested a way in which the lagging company can improve its income. Satisfactorily supported your suggestion with a specific analysis.Thoroughlyanalyzed each company’s income statement over the past two (2) years; thoroughly determined which company outperformed the other. Thoroughly suggested a way in which the lagging company can improve its income. Thoroughly supported your suggestion with a specific analysis.5. Analyze each company’s balance sheet. Prepare a vertical analysis for each company, interpret the results, and write a financial report. Also, suggest the manner in which the company that is not performing well can improve its balance sheet in order for it to be attractive to potential investors.Weight: 15%Did not submit or incompletely analyzed each company’s balance sheet. Did not submit or incompletely prepared a vertical analysis for each company, interpreted the results, and wrote a financial report. Did not submit or incompletely suggested the manner in which the company that is not performing well can improve its balance sheet in order for it to be attractive to potential investors.Partiallyanalyzed each company’s balance sheet. Partiallyprepared a vertical analysis for each company, interpreted the results, and wrote a financial report. Partiallysuggested the manner in which the company that is not performing well can improve its balance sheet in order for it to be attractive to potential investors.Satisfactorily analyzed each company’s balance sheet. Satisfactorily prepared a vertical analysis for each company, interpreted the results, and wrote a financial report. Satisfactorily suggested the manner in which the company that is not performing well can improve its balance sheet in order for it to be attractive to potential investors.Thoroughlyanalyzed each company’s balance sheet. Thoroughlyprepared a vertical analysis for each company, interpreted the results, and wrote a financial report. Thoroughlysuggested the manner in which the company that is not performing well can improve its balance sheet in order for it to be attractive to potential investors.6. 4 referencesWeight: 5%No references providedDoes not meet the required number of references; some or all references poor quality choices.Meets number of required references; all references high quality choices.Exceeds number of required references; all references high quality choices.7. Clarity, writing mechanics, and formatting requirementsWeight: 10%More than 6 errors present5-6 errors present3-4 errors present0-2 errors present