Finance

Finance
Introduction: Use the “Competition Bikes Inc. Storyline” case study to prepare a summary report based on your evaluation of the company’s operations. Task:
A. Prepare a summary report in which you do the following: 1. Evaluate the company’s operational strengths and weaknesses based on the following: a. Horizontal analysis results
Use the Horizontal tab in the Competition Bikes (CB) spreadsheet to identify strengths and weaknesses from year to year. The point isn’t to just read the financials, but be able to analyze what’s good and bad. b. Vertical analysis results
Use the Vertical tab to identify strengths and weaknesses in the composition of Sales on the Income Statement and Total Assets on the Balance Sheet. What changes are happening? Are they good or bad? c. Trend analysis results
Use the Trend analysis to identify what the company will look like in the next few years. Will it recover? d. Ratio analysis results
What are the company’s strengths and weaknesses based on analysis of the ratios derived from the balance sheet? What is the ratio? Why is it important? What is CB’s ratio in comparison to Two Wheel bikes? Is it better or worse? 2. Analyze the working capital of Competition Bikes Inc. Consider the following in your analysis: • Ways to improve the working capital • Ways to use excess working capital to generate an increase in profits Provide a basic definition of Working Capital. What is it? Are there other related working capital concepts? How is Working Capital calculated?
Discuss CB’s working capital. Calculate it. How has it performed?
How do you use cash and working capital to improve operations?
What is a good level of working capital? 3. Evaluate the internal controls for the Competition Bikes Inc. purchasing system.
Internal Controls: Closely examine the Purchasing case on the internal controls tab. Can you see areas where employees can act too freely? What are they and how could normal operations be circumvented? a. Recommend corrective actions for any weaknesses.
Weakness Corrective Actions: What can you do to correct the ‘holes’ in the procedures? b. Identify the risks to the company.
Risks: With the ‘holes’ what are the risks to the company? What kind of peril is the company in? What will unprincipled employees take advantage of? i. Discuss how to mitigate the risks arising from internal control weaknesses.
Risk Mitigation: What specific actions would you take to keep the risks identified in A3b from happening? 4. Analyze compliance with Sarbanes–Oxley requirements.
Compliance: You need to understand the basics of the Sarbanes Oxley Act. What is wrong with the letter (on the Internal Control Tab) from CB that is to accompany the Financial Statements? What is a material weakness? Did you find one or more in the Purchasing case? Is the company compliant in their internal control system? a. Recommend corrective actions for noncompliant areas.
Non-Compliance Corrective Actions: How would you bring CB into compliance? What actions would you take and why would that bring CB into compliance? B. If you use sources, include all in-text citations and references in APA format.
Note: When bulleted points are present in the task prompt, the level of detail or support called for in the rubric refers to those bulleted points. Note: For definitions of terms commonly used in the rubric, see the Rubric Terms web link included in the Evaluation Procedures section. Note: When using sources to support ideas and elements in a paper or project, the submission MUST include APA formatted in-text citations with a corresponding reference list for any direct quotes or paraphrasing. It is not necessary to list sources that were consulted if they have not been quoted or paraphrased in the text of the paper or project. Notes:
– No more than a combined total of 17% of a submission can be directly quoted or closely paraphrased from sources, even if cited correctly.
– Make sure you address the ‘why’ part of the topics. The key thing to remember is that you are conducting an analysis of Competition Bikes financial and management activities, not merely presenting the data on the spreadsheets.
– For the discussions, make your point/decision obvious and back it up with detail found in the spreadsheets. Insufficient data and insufficient analysis will result in a rejection.
– Remember to always apply analysis. Don’t just put in the numbers, but explain why they are different and if you can put them in a context with other numbers do so. A lack of analysis will result in that element not passing.
– Make sure you organize the work according to the rubric questions, so that the I can easily identify your specific answers.
– Don’t overthink your answers, but base them on the information given. If in doubt on details, refer back to the story line or the spreadsheet.
– If you aren’t confident about your work, don’t add words to cover yourself. Extraneous words will only make the graders have a harder time to find your answers or conclude that you aren’t quite getting your answers right. More clear answers will yield more clear feedback from the graders.
– For each item, define the topic, give results from the spreadsheets, and explain how and why they are important ORDER THIS ESSAY HERE NOW AND GET A DISCOUNT !!!  

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