Financial Statement Analysis

Financial Statement Analysis

Project description
Financial Statement Analysis
Outline of Individual Project
Obtain approval from your instructor for a company that you will analyze for this project. The company must be from this list. http://fortune.com/fortune500/
Download the most recent Annual Report from your chosen companys Web site; this is commonly located on the Investor Relations page. Prepare a report analyzing business mathematics concepts. Be sure to include the following in your report:
Explain how mathematics is used in the preparation of financial statements.
Discuss examples of business problem solving using mathematics from the Annual Report.
Explain the cost recovery methods used in the Annual Report, and indicate how these are factored into the Balance Sheet and Income Statement.
Discuss the types of indebtedness reported on the Balance Sheet and how the interest is computed.
Prepare and explain a horizontal analysis of the Balance Sheet for all years presented in the Annual Report.
Prepare and explain a vertical analysis of the Income Statement for all years presented in the Annual Report.
Explain the importance of using ratios and percentages in communicating financial results.
Please follow the template as guide pasted below.
Reference
Fortune. (2014). Fortune 500 2014. Retrieved from http://fortune.com/fortune500/
Unit 3 Business mathematics
Type your Name Here
American InterContinental University

Abstract
This is a single paragraph, no indentation is required. This page will be an abstract; a brief, comprehensive summary of the contents of the article; it allows the readers to survey the contents of an article quickly (Publication Manual, 2010). The length of this abstract should be 35-50 words (2-3 sentences). NOTE: the abstract must be on page 2 and the body of the paper will begin on page 3.

Introduction
Remember to always indent the first line of a paragraph (use the tab key). The introduction should be short (2-3 sentences). The margins, font size, spacing, and font type (italics or plain) are set in APA format. While you may change the names of the headings and subheadings, do not change the font or style of font.
Preparation of financial statements
Explain how mathematics is used in the preparation of financial statements. Be sure to be specific as to a concept used. This should be 4-5 sentences in length.
Problem solving
Discuss examples of business problem solving using mathematics from the Annual Report. Be sure to be specific as to how we use problem solving. This should be 4-5 sentences in length.
Cost recovery methods
Explain the cost recovery (depreciation) methods used in the Annual Report, and indicate how these are factored into the Balance Sheet and Income Statement. Be sure to provide specific information from the annual report of your business.
Debt
Discuss the types of indebtedness reported on the Balance Sheet and how the interest is computed. Be sure to mention a specific value for interest and what method is used to compute this.
Horizontal Analysis
Prepare and explain a horizontal analysis of the Balance Sheet for all years presented in the Annual Report. Be sure to present the actual calculations used in your analysis.
Vertical Analysis
Prepare and explain a vertical analysis of the Balance Sheet for all years presented in the Annual Report. Be sure to present the actual calculations used in your analysis.
Ratios and Percentages
Explain the importance of using ratios and percentages in communicating financial results. Be sure to provide a specific application from the annual report.
Conclusion
Add some concluding remarks-can be a sentence or two.

References
NOTE: The reference list starts on a new page after your conclusion.
For help with formatting citations and references using rules outlined in the APA Manuals 6th Edition, please check out the AIU APA guide located under the Interactive Learning section on the left side of the course. Note: For each citation you have in the body of your paper you should have a reference here.

Examples:
American Psychological Association APA. (2010) Publication manual of the American
Psychological association (6th ed.). Washington, DC: Author.
Association of Legal Writing Directors (ALWD) (2005). ALWD citation manual: A professional
system of citation (3rd ed.). New York: Aspen Publishers.