You are to act as a financial advisor to a client interested in investing in a particular industry.  You will research a company and provide a recommendation to your client whether he/she should invest

You are to act as a financial advisor to a client interested in investing in a particular industry.  You will research a company and provide a recommendation to your client whether he/she should invest 150 150 Affordable Capstone Projects Written from Scratch

Saint Leo University

Graduate Business Studies

MBA 560 Financial and Managerial Accounting

Financial Statement Analysis Project


You are to act as a financial advisor to a client interested in investing in a particular industry.  You will research a company and provide a recommendation to your client whether he/she should invest. Some possible industries include:


Industry Companies
Airline American/Southwest Airlines/United

Fast Food Wendy’s/McDonalds

Search Engine Google/Yahoo

Pharmaceutical Merck/Pfizer/Bristol Myers Squibb

Auto Ford/GM

Retail Gap/Guess/Abercrombie

Beverage Coca Cola/Pepsi


Or you may select other companies or another industry.  Each person in the class must select a different company.  Companies must be public companies.




PART A: Obtain Financial Statements


Obtain 3 years of financial statements (just the Balance Sheet and Income Statement) for your company from SEC.GOV. 3 BALANCE SHEETS AND 3 INCOME STATEMENTS will be submitted. One set per company.



PART B: Enter data into FSAP (Financial Statement Analysis Package)

(Google – “Financial Statement Template.xls, click on “Excel Template for Income Statement – Accounting Simplified”).


Enter the Balance Sheet and Income Statement amounts for 3 years into the Financial Statement Analysis Package Excel file (just the Balance Sheet and Income Statement information, not the Statement of Cash Flows). Make sure your balance sheet BALANCES!!!! Make sure your Net Income matches your Net Income on the Income Statement. Submit one FSAP per company.


PART C: Company Analysis


Focus more on their position within the industry, recent developments, fluctuation in stock prices relative to the market/industry, and other items of significance that would impact your investment decision. Legal issues facing the company. New markets and new products. DO NOT WRITE ABOUT THE HISTORY OF THE COMPANY (1 page – single spaced). Submit 1 paper per company.


PART D: Industry Analysis


Summarize the economic outlook for your industry.  Look at recent market activity, recent indicators impacting your industry. Address recent change in stock prices.  Obtain industry averages for your ratio and common size analysis. Identify laws/regulations impacting your industry. Identify market trends and geo/political events impacting your industry. Identify Micro/Macro economic conditions impacting your industry. DO NOTE WRITE ABOUT YOUR INDIVIDUAL COMPANIES. (1 page – single spaced). Submit 1 paper per industry.


Data sources:  Standard and Poor’s Stock Reports or other Industry Surveys, Mergent’s Industry Review., moneycentral,,, and other financial websites. Examine recommendations of other investment websites (buy/sell/hold).





  1. Include Company Analysis (address prior comments)
  2. Include Industry Analysis (address prior comments)
  3. Include FSAP summary – Create tables summarizing the analysis tab of your FSAP. Make it look professional.
  4. Write a summary of the significant findings from the financial statement analysis. (1 single spaced page). Address significant (Focus on the 2-4 items under each) Ratios, Horizontal Analysis, and Common Sized Analysis from the FSAP (look under the Analysis Tab). Do not address all the ratios and every line of vertical and horizontal analysis, just what you feel is important.
  5. Based on your findings would you invest?  Include specific supportfor your decision based on your findings in the analysis.  Also include support (for or against) investing in the industry you chose.






Final paper will be submitted to

  Due %
PART A – Financial Statements   15%
PART B – FSAP   15%
PART C – Company Analysis   15%
PART D – Industry Analysis (2 Companies submit one)   15%
PART E FINAL ESSAY – Analysis using Ratio, Common Sized, and Vertical Analysis – Decision




Financial Statement Analysis Presentation

You will then present your findings, including an overview of the companies, on the last day of classes.

Presentation Rubric

Evaluating Student Presentations  
Department of Accounting, Business Information Systems, and Marketing  
Criteria Unacceptable






Total Points
1)  Introduction Student does not introduce topic and offers no components for discussion. Student introduces topic and begins presenting but does not clearly state all variables for discussion.   Student completely introduces topic and clearly states 3 to 4 components for discussion.  
2)  Organization Audience cannot understand presentation because there is no sequence of information. Student presents all components but not in a logical sequence (audience has some difficulty following presentation).   Student presents information in logical, interesting sequence which audience can follow.  
3)  Dress and


Student was not professionally dressed and properly groomed. Student was professionally dressed but displayed one or more distracting accessories.   Student was professionally dressed devoid any distracting accessories.  
4)  Subject


Student does not have grasp of information; student cannot answer questions about subject. Student is able to answer rudimentary questions and appears uncomfortable with the topic of discussion.   Student demonstrates full knowledge (more than required) by answering all questions with explanations and elaboration.  
5)  Graphics Student uses superfluous graphics or no graphics Student occasionally uses graphics that rarely support text and presentation.   Student’s graphics explain and reinforce screen text and presentation.  
6)  PP Slides and/or other Visual Student’s slide presentation (or handout) has four or more spelling errors and/or grammatical errors.  Less than half of the slides follow PP rules (1 topic, 4 to 6 bullets slide). Slide presentation (or handout) has three misspellings and/or grammatical errors.  More than half of the slides follow PP rules.   Slide presentation (or handout) has no misspellings or grammatical errors.  All slides follow PP rules.  
7)  Eye Contact Student reads all of report with no eye contact. Student occasionally uses eye contact, but still reads most of report.   Student maintains eye contact with audience, seldom returning to notes.  
8)  Voice

Production and Grammar Usage

Student does not effectively articulate, incorrectly pronounces terms, and uses slang and/or idiosyncrasies. Student’s voice is low. Student incorrectly pronounces terms. Audience members have difficulty hearing presentation.   Student uses a clear voice and correct, precise pronunciation of terms so that all audience members can hear presentation.  
9)  Conclusion Student offered no conclusion and ended presentation without appropriate closing. Student offered a presentation summary but did not reiterate variables that were discussed and/or brought in new information.   Student clearly summarized presentation by briefly reiterating all variables discussed—without bringing in new information.  
10)  Overall Deliverance Student uses no gestures, no examples, and displays poor voice characteristics and a lack of confidence. Student uses some gestures, doesn’t show complete confidence and presents with little enthusiasm.  Examples were used but some did not relate to presentation topic.   Student presents with poise and confidence and uses appropriate gestures, posture, volume resonance, and stimulating examples that relate to the topic.  
        Total Points:  


0-39 points = Unacceptable

40-79 points = Acceptable

80-100 points = Exemplary