Course Analysis Project

Acct 635/FIN 700 Final Project Grading Rubric (total 200 points possible)
Item Points Possible Instructor notes
1. Business analysis contains a thorough
discussion of a firm’s competitive
challenges and evaluation of its
business plans/goals. In particular,
please perform:
a. Porter’s Five Forces Analysis of
Competitive environment of the
company.
b. SWOT analysis and analysis of risks
facing the company. Please refer
directly to the risk disclosures the
company provides in its most recent
10-Ks.
/20
2. Project contains analysis of most
recent news surrounding the company
from multiple news sources and
provides consideration of how this
news analysis impacts business
analysis. In particular, you must
provide a summary of:
a. News articles for the most recent
two years for the company.
b. Discussion of the last four
quarterly earnings releases and
earnings releases conference calls
and strategic company issues
raised in those earnings releases
and conference calls.
/15
3. Project contains a discussion of critical
accounting issues facing the company
/15
as well as discussion of risk of possible
mis-application of accounting rules
that could hurt investors, including
consideration of incentives to commit
accounting fraud (e.g. due to
excessive growth expectations).
In particular, please discuss whether
the company’s revenue recognition
policy is consistent with that of its
competitors. Discuss if there are any
obvious red flags suggesting
management may want to manage
earnings or misstate earnings outright.
Discuss levels of a company’s accruals
and how they compare to the
competitors (whether they are in
particular excessively high). Discuss
any unusual changes in ratios which
may suggest earnings management
risks (for example excessive declines
in AR or inventory turnovers or overall
declines in turnover ratios).
Discuss if a company has material
accounts which require significant
management judgments, and thus
could be vulnerable to manipulation
(e.g. significant estimates such as
goodwill).
4. Project contains a thorough discussion
of applicable ratio analysis with
respect to implications for future
profitability and future cash flows.
/30
5. Project contains a clear discussion of
how business analysis, accounting
analysis as well as ratio analysis
impact assumptions surrounding
forecasts of future financial
statements.
Please be very clear on how ratio patterns
affected your forecast judgments and
predictions. Please be very specific in your
discussions of the assume sales and expenses
growth rates. Please do not assume constant,
persistent growth rates without clear
justification. Please make sure to EXPLICITLY
tie these growth rates assumptions to your
earlier discussion of competition.
/30
6. Project contains well-presented
forecasted financial statements
(income statement and balance sheet)
Please include your assumption worksheet
and make sure that your forecasted balance
sheet is in balance.
/30
7. Project is organized and presented in
professional manner (i.e. contains an
executive summary, appropriately
organizes the text and has clear and
neat presentation of exhibits)
/20
8. Writing is clear and is free of
mechanical errors.
/20
9. Project presentation was well
organized, within appropriate time
limits and followed professional
requirements as stipulated in the
Professor’s Writing and Presentations
Video.
/20
Points Earned /200