MGCR 211 FINAL PROJECT: FINANCIAL STATEMENT ANALYSIS
FINANCIAL STATEMENT ANALYSIS代写 he project can be done in a group of 2. It’s due on 11:59pm, June 24th. The report must be typed, including
The project can be done in a group of 2. It’s due on 11:59pm, June 24th. The report must be typed, including a clear cover page indicating the student names and student numbers. Please use a font equivalent to Arial 11 or Times New Roman 12, with line spacing 1.5, and a normal margin and please keep the report below 10 pages (forms included).FINANCIAL STATEMENT ANALYSIS代写
Please find the annual reports of WestJet and Air Canada in 2017 posted in the “Final Project” folder under “Content” section on MyCourses and analyze these two reports to answer the following questions to develop your final report.
1)Briefly evaluate these two companies in terms of EPS (earnings pershare),FINANCIAL STATEMENT ANALYSIS代写
price-to-earnings (P/E) ratio, total revenues, total expenses, total assets, total debt, and total equity for the fiscal year 2017. For P/E ratio, use the stock price on the last day of the fiscal year for both companies (usually stock price is not reported in the annual reports; find the stock price from online resources, e,g., Yahoo Finance).
2)Compute return on assets (ROA), return on equity (ROE), profit margins, and operating profit margins for both companies for the fiscal year ended in 2017.Remember to use average total assets and average stockholders’ equity in your ratio calculations. Consider profitability in terms of overall ROA, ROE, netprofit margins, and operating profit margins. Show all your calculations.FINANCIAL STATEMENT ANALYSIS代写
3)Assess and explain the companies’ liquidity and solvency for both companiesfor the fiscal year 2017. Are the companies likely to meet their debts as they come due? Consider current ratio, accounts receivable turnover, average collection period for accounts receivable, times interest earned, and debt to total assets. Show your calculations.
4)Compute the asset turnover for both companies for the fiscal year 2017.FINANCIAL STATEMENT ANALYSIS代写
Assess andexplain the companies’ asset Which firm is more efficient in its use of assets? Show your calculations.
5)Comment on any differences between two companies’ dividend policies. Ifthe firm is not paying dividends, provide potential reasons as to why they do not decide to give dividends to their shareholders. If the firm is paying dividends, provide possible reasons as to why they issue dividends to their
6)Assess the cash flow of each company after looking into statements of cash flows in 2017. Are cash flows from operating activities positive or negative? Comment on whether cash flows from operations are better or worse indicators of underlying firm performance, relative to earnings (or profits) on the income statement?FINANCIAL STATEMENT ANALYSIS代写
7)Based on the above analyses, do you expect that each company achieve higher or lower accounting performance in 2018, relative to 2017? Explain your reasoning for each
8)If you are hired as a consultant for Air Canada, what would be your recommendations for the company based on your analyses above? By the same token, if you are hired as a consultant for WestJet, what would be your recommendations?