ACCT3302 Financial Statement Analysis
Case Study Questions
1. Prepare the cash flow statement of the company for all the years possible (you can use either indirect or direct method). Do you observe any liquidity concerns from the cash flow statement trend?
2. Prepare and analyse the common size balance sheet of the company. Comment on the trend of current and non-current assets and liabilities based on your observation.
3. Prepare a trend income statement for the company. Comment on the trend with a special focus on revenue, all expenses, cost of goods sold, and PAT.
4. Calculate the ratios outlined in Exhibit 3 for the firm. )
5. Based on these ratios and their comparison with industry ratios, would you, as the loan officer, grant the loan request? Explain in detail. To structure your answer, focus on all the ratios you calculated.
Using online search tools, choose a company in the same sector as AK, operating in the USA. Present the financial statements of the company for the same periods as in the case study, and make a clear comparison with AK using following guidelines:
1. Compare the cash flow statements of the two companies. Comment on the trend of cash generated by operating activities.
2. Prepare the common size balance sheet of the company and compare the trend of current and non-current assets and liabilities with that of AK. Explain your observations?
3. Calculate the ratios outlined in Exhibit 3 and compare them with those for AK. Explain your observations