Due to your strong performance in the Introduction to Financial Accounting course this past semester, you and

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Question:

Due to your strong performance in the Introduction to Financial Accounting course this past semester, you and a group of your classmates have been hired by Fontana Pharmacy Ltd as part of an accounting internship program.

Your first task is to perform a detailed financial analysis of the company. More specifically, you have been asked to prepare a single comprehensive report which addresses the following requirements:

1. Explain the value, purpose, and limitations of ratio analysis.

2. Explain the significance of trend analysis.

3. Provide a detailed company overview of Fontana Pharmacy Ltd, which should include the following:

Review background information about the company AND the industry. Use information from the chairman’s and/or management’s reports, news reports, websites, analysts’ reviews, and other relevant sources.

Also, outline

4. Using the full list of ratios and formulas as outlined on the ratio analysis worksheet provided on Moodle, calculate each of the stated ratios for the company for the past three (3) financial years (i.e. the years ending June 2019, June 2020, and June 2021).

Additionally, you are to prepare a DETAILED trend analysis discussion of the company over the same period.

Your analysis should reference the ratios calculated and should incorporate the use of graphs/charts. You should utilise information from the notes to the financial statements, other sections of the annual report, or from other relevant sources to support your analysis. This is especially crucial where you observe significant movements in any of the trends (whether positive or negative).

The discussion of the trend for each ratio should span one to two well-developed paragraphs.

5. You are also to prepare a summary commenting on the general liquidity, solvency, profitability, asset management, and investment performance of the company.

The discussion of each ratio category should span one to two well-developed paragraphs. 2

Please note the following:

You are to use the Jamaica Stock Exchange website or Fontana’s website to retrieve the annual reports for the company for 2020 and 2021, as these reports contain the financial statements and other background information which will form the basis of your analysis. You will also be expected to pull on other research sources to support your analysis and to meet the requirements of the task.

Your report is expected to include headings and sub-headings as appropriate.

Your report should include an appendix that shows the workings for all ratio calculations completed (the workings should not be shown in the body of the report).

Information retrieved from research sources should not be copied and pasted verbatim, but should instead, should be significantly paraphrased and reworded to express your own interpretation and analysis. Copying and pasting and other forms of plagiarism will be heavily penalized where observed.

In-text citation according to the APA format is to be used to reference quotations and other material retrieved from research sources.

A full reference list is to be provided with all research sources used, and this reference list is to be compiled in accordance with the APA format.

The body of the report (not including the cover page, project management report, references, and appendices) is expected to span a minimum of six pages.