BUS 550: How to Analyze Financial Statements Assignments Solution
Activity Grading Rubric
All Levels, College of Business
Part 1 Discussion Question
Chapters 3 and 4 of Ross, et al (2022) textbook, you learned about how to analyze financial statements and how to interpret and use them for long-term financial planning. Consider the following question:
In recent years, several manufacturing companies have reported the cash flow from the sale of Treasury securities in the cash from operations section of the statement of cash flows. What is the problem with this practice? Is there any situation in which this practice would be acceptable?
Part 2 : Planning and Growth
Based on the content covered in Week 4 and Chapters 3 and 4 of the Ross, et al. (2022) text, students learned about financial statement analysis and long-term financial planning and growth. Students should address the following:
Review “Mini Case: Planning for Growth at S&S Air” in your textbook on page 129, also found at the end of Chapter 4 in your textbook. Then, answer the following questions:
- Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? How do you know?
- S&S Air is planning for a growth rate of 12% next year. Calculate the EFN for the company assuming the company is operating at full capacity. Can the company’s sales increase at this growth rate? Explain your reasoning.
- Most assets can be increased as a percentage of sales. For instance, cash can be increased by any amount. However, fixed assets must be increased in specific amounts because it is impossible, as a practical matter, to buy part of a new plant or machine. In this case, a company has a “staircase” or “lumpy” fixed cost structure. Assume S&S Air is currently producing at 100% capacity. As a result, to increase production, the company must set up an entirely new line at a cost of $5,000,000. Calculate the new EFN with this assumption. What does this imply about capacity utilization for the company next year?
- Consider how long term planning and growth is affected by location in the world. Discuss how you would advise S&S Air about planning and growth in your own country and expansion into other countries?
Paper should be 4-6 pages and include all calculations referenced in the assignment questions.
Discussion Question (DQ) Rubric Grading Rubric
All Levels, College of Business
| Criteria |
Performance Indicators (Observation descriptors indicating extent to which criterion is met.) |
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|
Exemplary
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Proficient
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Needs Improvement
|
Unsatisfactory
|
No Submission | |
| 40, 38, 36, 34, 32 | 30, 28, 26, 24, 22 | 20, 18, 16, 14, 12 | 10, 8, 6, 4, 2 | 0 | |
| Depth of Initial Post
40% of overall grade |
Student answers the discussion question prompt completely with examples and/or reasoning.
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Student answers the prompt almost completely with examples and/or reasoning.
How to Analyze Financial Statements Assignments Solution
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Student answers the prompt partially but does not include examples and/or reasoning.
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Student responses are not well-conceived, do not offer insight, and/or do not offer examples.
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No submission.
0 points |
| Option | 40, 38, 36, 34, 32 | 30, 28, 26, 24, 22 | 20, 18, 16, 14, 12 | 10, 8, 6, 4, 2 | 0 |
| Depth of Peer Responses
40% of overall grade |
Student responses to peers are well-conceived, offering insight and examples.
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Student responses to peers are mostly well-conceived, and are supported by insight and examples.
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Student responses to peers are partially complete, and/or lack clarity.
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Student responses to peers are incomplete, inaccurate, and/or unclear.
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No submission.
0 points |
| 20, 19, 18, 17, 16 | 15, 14, 13, 12, 11 | 10, 9, 8, 7, 6 | 5, 4, 3, 2, 1 | 0 | |
| Accountability
20% of overall grade |
Students posts initial response to DQ prompt and to peer responses on time.
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Student is late when posting initial response to DQ prompt and/or to peer responses, but has a viable excuse and has notified the professor in advance – OR – Student posts one response on time and one post late. | Students is late when posting initial response to DQ prompt AND peer responses – OR – Student posted initial response on time but no peer response.
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Student posts initial response late and fails to post peer response.
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No submission.
0 points |
ORDER BUS 550: How to Analyze Financial Statements Assignments Solution
Activity Grading Rubric
All Levels, College of Business
| Criteria | How to Analyze Financial Statements Assignments Solution
Performance Indicators (Observation descriptors indicating extent to which criterion is met.) |
||||
|
Exemplary 10・9 |
Proficient 8・7・6 |
Needs Improvement 5・4 |
Unsatisfactory 3・2・1 |
No Submission | |
| Depth
40% of overall grade |
All components of the assignment are:
● Well described ● Variables are defined and explained ● Underlying assumptions are identified
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All components of the assignment are:
● Well described ● Variables are defined and explained ● Underlying assumptions are not well explained
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All components of the assignment are:
● Well described ● Variables are not fully defined and explained ● Underlying assumptions are not well explained
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All components of the assignment are:
● Not well described ● Variables are not fully defined and explained ● Underlying assumptions are not well explained
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0 points |
| Organization
20% of overall grade |
The activity is well organized and has a logical flow.
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The activity is fairly organized and mostly follows a logical flow.
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The paper has some organization and logical flow issues.
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The paper has unsatisfactory organization and no logical flow. | 0 points |
| Grammar and Spelling
20% of overall grade |
Paper is free of distracting spelling, punctuation, and grammatical errors.
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Paper has few spelling, punctuation, and grammatical errors allowing the reader to follow ideas clearly.
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Most spelling, punctuation, and grammar are correct, which allows the reader to progress through the paper. Some errors remain.
How to Analyze Financial Statements Assignments Solution |
Spelling, punctuation, and grammatical errors create distraction, making reading difficult. Errors are frequent. | 0 points |
| Formatting
20% of overall grade |
Paper meets all formal and assignment requirements and evidences attention to detail; all margins, spacing and indentations are correct. Paper is neat and correctly assembled with a professional look. | The paper follows most formatting guidelines, including page-length and APA formatting requirements.Paper is neat and correctly assembled.
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Paper generally follows formatting guidelines and assignment requirements, including page-length and APA formatting requirements. Paper is neat but may have some assembly errors
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Paper does not follow format and assignment requirements, including page-length and APA formatting requirements to a great degree.
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0 points |