Based on these financial statements, the company’s background, industry statistics, and other market and company information, prepare a financial statement analysis report covering the following points:
a. Executive summary of the company and its industry.
b. Detailed evaluation of:
(1) Short-term liquidity (current debt-paying ability).
(2) Cash forecasting and pro forma analysis.
(3) Capital structure and solvency.
(4) Return on invested capital.
(5) Asset turnover (utilization).
(6) Profitability and equity analysis. Note: You are expected to use a variety of financial analysis tools in answering (b). Your analysis should yield inferences for each of these six areas.
Page 693c. Comment on the usefulness of the financial statements of this company for your analysis.
d. How did accounting principles used in the financial statements affect your analytical measures?
e. Prepare a forecast of the income statement, balance sheet, and statement of cash flows for a five-year horizon and a terminal year in Year 6.
f. Estimate the value of your company’s common stock per share using the valuation analysis and procedures described in the Comprehensive Case.
In this Assignment, you will dig deep into the financial statements of a company selected by your instructor (Walt Disney World). You will analyze the company’s past financial performance to help you forecast their future business, profitability, and cash flow. You will use these results to forecast the value of the company; what YOU think the company is actually worth today. You will compare your value to the current stock price, explaining any differences.
