We do not have a lot of details about the company’s operations, but we do have an Income Statement and Balance Sheet for years 25-28. We also know that this company completed a series of mergers and acquisitions to better position itself in its market. You will act as an investor who is considering purchasing $1,000,000 in new issuance stock (about 10%). Determine whether to make the investment and provide an analysis backing up your decision. Your job is to unravel the information available, analyze the financial statements and draw some conclusions. You will produce (at least) three analytical assessments and a summary of conclusions.

Review the Financial Statements associated with this project and make some initial observations about the company. Come up with at least 3 observations. (For example, by looking at the Income Statement you can see that the company is currently operating profitably. Your observations can be simple or complex, broad, or detailed.)

Required:

Perform analysis of the Financial Statements provided for the company. Produce a summary of your conclusion about the company, including the recommendation you make i.e. to invest or not to invest. Provide the analytical tools you used (at least three) that support your conclusion or recommendation. Be sure to include a description of your analysis in addition to the computational work. You should submit: A visually appealing summary that presents your conclusions and provides easy-to-understand analytics to support your conclusion. Supplemental work to provide the supporting calculations/computations and descriptions of your analysis.

Good summaries clearly state the recommendation you are making and the recommendation is then followed by your analysis. Each analysis includes clear computations and a brief description. Both clarity and creativity tend to be valued. When used appropriately, charts, graphs, and visual aids can improve your one-page summary

  

Transcribed Image Text:

Period Ended on Sept 30th of Year Net sales Cost of goods sold Gross profit Combined SG&A expenses Combined impairments and restructuring and other Goodwill impairment Operating profit Interest expense, net Other income (or expense) Income before income taxes Income tax expense Income from continuing operations Loss from discontinued operations or noncontrolling interests Net INCOME Cash dividends paid per share Paper Packaging Company Income Statement For the Years Ending Year 26 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 14,171,800 $ 11,413,200 $ 2,758,600 $ 1,591,200 $ 737,100 $ $ 430,300 $ (256,700) $ 71,000 $ 244,600 $ (89,800) $ 154,800 $ (551,100) $ (396,300) $ 1,500 $ Year 27 14,859,700 $ 12,141,500 $ 2,718,200 $ 1,686,800 $ 243,400 $ $ 783,200 $ (222,500) $ 296,900 $ 857,600 $ (159,000) $ 698,600 $ 9,600 $ 708,200 $ 1,600 $ Year 28 16,285,100 12,923,100 3,362,000 1,843,200 321,500 1,187,200 (293,800) 141,400 1,034,800 874,500 1,909,300 (3,200) 1,906,100 1,720 Period Ended on Sept 30th of Year Net sales Cost of goods sold Gross profit Combined SG&A expenses Combined impairments and restructuring and other Goodwill impairment Operating profit Interest expense, net Other income (or expense) Income before income taxes Income tax expense Income from continuing operations Loss from discontinued operations or noncontrolling interests Net INCOME Cash dividends paid per share Paper Packaging Company Income Statement For the Years Ending Year 26 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 14,171,800 $ 11,413,200 $ 2,758,600 $ 1,591,200 $ 737,100 $ $ 430,300 $ (256,700) $ 71,000 $ 244,600 $ (89,800) $ 154,800 $ (551,100) $ (396,300) $ 1,500 $ Year 27 14,859,700 $ 12,141,500 $ 2,718,200 $ 1,686,800 $ 243,400 $ $ 783,200 $ (222,500) $ 296,900 $ 857,600 $ (159,000) $ 698,600 $ 9,600 $ 708,200 $ 1,600 $ Year 28 16,285,100 12,923,100 3,362,000 1,843,200 321,500 1,187,200 (293,800) 141,400 1,034,800 874,500 1,909,300 (3,200) 1,906,100 1,720

Answer rating: 100% (QA)

Observations on Income Statement for the Year 26 Year 27 and Year 28 Explanation 1 Here we can see ... View the full answer