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Assignment 2: You Are an Investment Analyst

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Assignment 2: You Are an Investment Analyst
Due Week 10 and worth 320 points

As the CFO of your corporation, you are in charge of preparing and analyzing financial statements that will be presented to potential investors and creditors. However, before you can present the financial statements to investors and creditors, you need to prepare the financial statements with supporting analysis. Select one (1) pair of the following companies to conduct your financial statement analysis.
• Pepsi versus Coca Cola, or
• Amazon versus eBay

Write an eight to ten (8-10) page paper in which you:
1. Analyze each company’s history, product / services, major customers, major suppliers, and leadership, and provide a synopsis of each company.
2. Identify three (3) profitability ratios that creditors may be interested in. Calculate the ratio for each company, and prepare a report to summarize your findings on the financial health of each company. Also, recommend to management the manner in which they can improve each of the three (3) ratios identified.
3. Summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day, and analyze the impact that these events had on each company’s financial statements. Indicate the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.
4. Analyze each company’s income statement over the past two (2) years, and determine which company outperformed the other. Suggest a way in which the lagging company can improve its income. Support your suggestion with a specific analysis.
5. Analyze each company’s balance sheet. Prepare a vertical analysis for each company, interpret the results, and write a financial report. Also, suggest the manner in which the company that is not

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