ACC 205 Financial Statement Analysis

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Wal-Mart AnalysisACC 205 Financial Statement AnalysisWrite a detailed financial statement analysis of Wal-Mart Stores Inc. for the years 2010, 2011,and 2012, covering the following areas:1.Company Overview: Provide a brief overview of Wal-Mart, including its industry,products or services, and main competitors. (1-2 paragraphs)2.Horizontal Analysis: Perform a three-year horizontal analysis of the income statementand balance sheet. Discuss the trends, both positive and negative, based on youranalysis.3.Ratio Analysis: Calculate and interpret the current ratio, quick ratio, and cash to currentliabilities ratio for the two most recent years. Discuss any liquidity issues and comparethe results to competitors in the same industry.4.Recommendation: Based on your analysis, would you recommend investing in Wal-Mart? Discuss the strengths and risks of the company, providing a well-supportedrecommendation.Your paper should be between 1500-1700 words, formatted according to APA style as outlinedin the Ashford Writing Center. You must use at least two scholarly sources in addition to yourtextbook.

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Financial Statement Analysis of Wal-Mart Stores Inc.: A Comprehensive Review of FinancialHealth and Investment RecommendationWrite a five-to seven-page financial statement analysis of a public company, formattedaccording to APA style as outlined in the Ashford Writing Center.In this analysis you willdiscuss the financial health of this company with the ultimate goal of making a recommendationto other investors.Your paper should consist of the following sections: introduction, companyoverview, horizontal analysis, ratio analysis, final recommendation, and conclusions.Yourpaper needs to include a minimum of two scholarly resources in addition to the textbook asreferences.Company OverviewProvide a brief overview of your company (one to two paragraphs at most).What industry is itin?What are its main products or services?Who are its competitors?Horizontal Analysis of Income Statement and Balance SheetPrepare a three-year horizontal analysis of the income statement and balance sheet of yourselected company.Discuss the importance and meaning of horizontal analysis.Discuss boththe positive and negative trends presented in your company.Ratio AnalysisCalculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period.Discuss and interpret the ratios that you calculated.Discuss potential liquidity issues based onyour calculations of the current and quick ratios.Are there any factors that could be erroneouslyinfluencing the results of the ratios?Discuss liquidity issues of competitive companies withinthe same industry.RecommendationBased on your analysis would you recommend an individual invest in this company?Whatstrengths do you see?What risks do you see?It is perfectly acceptable to state that you wouldrecommend avoiding this company as long as you provide support for your position.Financial Analysis of Wal-MartAbstractThe purpose is to present the financial analysis of Wal-Mart Stores Inc. To analyze the financialposition data for the year ended Jan 2012 and Jan 2011 has been used.For this purpose thehorizontal and ratio analysis techniques have been used.Company Overview

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