Financial Analysis: In this section of the report, you will use the most recent quarterly financial statements for
your chosen business and the Project Two Financial Formulas spreadsheet to calculate appropriate financial
formulas for assessing the business’s financial health. You will also analyze all three available financial options
for improving the business based on your calculations and the provided Project Two Financial Assumptions
document.
Financial Calculations: Calculate accurate financial formulas to assess the business’s current financial health.
Specifically, you must calculate the following:
Working capital
Current ratio
Debt ratio
Earnings per share
Price/earnings ratio
Total asset turnover ratio
Financial leverage
Net profit margin
Return on assets
Return on equity
Working Capital Management: Explain the impact of working capital management on the business’s
operations. Provide examples to support your claims.
Bond Investment: Analyze the risks and benefits of the business choosing to invest in a corporate bond,
including the necessary ethical considerations, appropriate calculations, and examples to support your
analysis.
Capital Equipment: Analyze the risks and benefits of the business choosing to invest in capital equipment,
including the necessary ethical considerations, appropriate calculations, and examples to support your
analysis.
Capital Lease: Analyze the risks and benefits of the business choosing to purchase a capital lease, including
the necessary ethical considerations, appropriate calculations, and examples to support your analysis.
Financial Evaluation: In this section of the report, you will evaluate the three available financial options for the
business and recommend which option(s) are the best for the business to choose.
Financing: Explain how a business finances its operations and expansion.
Bond Investment: Assess the appropriateness of a bond investment as a financing option for the business’s
financial health, using your financial analysis and other financial information to your support claims.
Capital Equipment: Assess the appropriateness of a capital equipment investment as a financing option for the
business’s financial health, using your financial analysis and other financial information to support your claims.
Capital Lease: Assess the appropriateness of a capital lease purchase as a financing option for the business’s
financial health, using your financial analysis and other financial information to support your claims.
Short-Term Financing: Explain how potential short-term financing sources could help the business raise
needed funds for improving its financial health. Base your response on the business’s current financial
information.
Future Financial Considerations: Describe the business’s likely future financial performance based on its
current financial well-being and risk levels. Use financial information to support your claims.
Financial Recommendations: In this section of the report, you will recommend which financing option(s) are the
best for the business to choose depending on its financial health.
Financial Recommendation(s): Recommend the most appropriate financing option(s) based on the business’s
financial health, including a rationale for why the option(s) are best.
