BUS 500 MULTI-MODULE COMPREHENSIVE PROBLEM ASSIGNMENT

Required Part II – Module Six:The purpose of the second part of the comprehensive project is to compute financial statement ratios.Use the Library’s research guide to get started on Part IIhttp://libguides.excelsior.edu.vlib.excelsior.edu/bus500A. Based on formulas given in Appendix B, compute the following ratios in Excel for two years.1. Debt ratio2. Gross profit margin3. Free cash flow4. Times interest earned5. Accounts receivable turnover6. Inventory turnoverB. Prepare a DuPont Analysis of ROE for two years, including computations of1. Return on Sales2. Asset Turnover3. Return on Assets4. Financial Leverage5. Return on EquityC. Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:1. stronger / weaker2. quicker /slower3. more / less liquid4. more / less riskD. Submit a report. Write a 2-4 page report evaluating trends in all of the above ratios. Discuss whetheryour company’s profitability, efficiency, liquidity, and solvency are improving or deteriorating.Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.RequiredPart III – Module Seven:The purpose of the third part of the comprehensive project is to use resources available to obtain industry averages for commonly used ratios. Additionally you will compare company ratio results to industry averages.Use the Library’s research guide to get started on Part IIIhttp://libguides.excelsior.edu.vlib.excelsior.edu/bus500A. Obtain the four-digit primary SIC (Standard Industrial Classification) Code and industry title for yourcompany. Record the primary SIC code and industry title at the top of the Ratio Analysis Worksheet.B. Obtain industry averages for commonly used ratios in the current period. Industry average informationis reported by industry title or SIC code.C. Look up the following industry-average ratios:a. Current ratiob. Debt ratioc. Gross profit margind. Times interest earnede. Accounts receivable turnoverf. Inventory turnoverg. Return on Salesh. Asset Turnoveri. Return on Assetsj. Financial Leveragek. Return on EquityD. Submit a report. Write a 2-4 page report comparing the above ratios to industry averages. Discusswhether your company’s profitability, efficiency, liquidity, and solvency are better than, or worse then,its peers.Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.RequiredPart IV – Module Eight:A. Prepare a well-written titled “Would You Advise a Friend to Invest in This Company?” based upon yourresearch and analysis of this company’s financial information. Identify 3-5 significant points that justifyyour conclusion. Support your points with a comprehensive explanation incorporating sound reasoning.B. Submit a report that is 4-5 pages long. The report should be well written with introductory andconcluding paragraphs. References must be appropriately cited.Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.