1. Company Selection. The company I choose is BEST BUY
1) Sign up your company here. None of students share the same company. (First Sign-in, First Take-out)
2) Must choose a US based company that has at least 5years listed in the US stock exchanges from S&P 500 companies, Nasdaq with 3,300, NYSE with 2,400.
3) Recommended to choose a company that has their Inventory (All kinds of manufacturing, tech, industrial, Wholesale and retail, Agriculture…etc.)
4) Do Not choose Apple & Amazon (Wouldn’t get credit since covered in class) and a company that doesn’t have inventory for example FINANCIAL SERVICE companies that have way different financial statement structures, such as banks, investment banks, insurance…
5) Download the recent 10Q of your company (You can find them on Investor Relation page in the company website or in SEC)
2. Complete Word part
You will submit a Word file that includes: forecasted financial statement analysis (a list of all the inputs, variables, and explanations of assumptions for the forecasting rationale, AFN or Excess cash, financial ratio analysis)
1) Company Analysis
a. Intro: Business Description & Market Analysis (max. 2 page)
b. Summarize Item 2. Management’s Discussion and Analysis on 10Q (max. 5 page but must include all topics)
2) List of explanations for all the input variables of assumptions to forecast 4 quarters forecasted financial statements
a. Why should this input variables be? How are they obtained? Where is the information? Must be realistic based on research.
b. All inputs MUST be described in Word with clear explanations and citations
3) Analyze and Evaluate forecasted Income Statement, Balance Sheet, and Statement of Cash Flows.
Explain how your input variable assumptions and projections affect to the forecasted financial statements and why the forecasted financial statements should be.
a. Compare and evaluate the I/S items between the current quarter VS. 4 forecasted quarter
b. Compare and evaluate the B/S accounts balance between the current quarter VS. forecasted quarter
c. Explain the business activities in terms of operating, investing, financing, and cash balance.
d. Use as many financial ratios as possible to analyze the forecasted financial statements.
4) Research policies regarding Ethics Sustainability & Responsibility (ESR) and Diversity, Equity, Inclusion & Belonging (DEIB) for the company you’ve chosen for the Final Project.
This is based on the Hult Academic Policy that mandatorily include ESR and DEIB in the course learnings.
a. Summarize the policies and evaluate them by your own words in a Word file
b. Turnitin % will be checked (significant Turnitin similarity may result in Honor Code Violation under AIC investigation)
c. Two pages of summary and evaluation each for ESR and DEIB.
3. Complete Excel part.
You will also submit an Excel file that includes: quarterly forecasted financial statements and financial ratio analysis.
1) Embed the recent 10Q Income Statement and Balance Sheet in the Excel template.
2) Apply the most reasonable assumptions to input variables and support them through research
3) Create 4 quarters forecasted financial statements for a year (I/S, B/S, and CF/S)
4) Compute the financial ratios to analyze the forecasted financial statements