Analysis of Financial Statements
ACC 610 Milestone TwoGuidelines and Rubric This is the secondof three milestone assignments that will lead to completion of your course project. In this assignment, you will complete Critical Element II:Analysis of Financial Statements. Recall that,due to the sequencing of content for the modules, the critical elements are being prepared out of order. For the complete sequence, see theACC 610 Final Project Guidelines and Rubric document.This milestone addresses the following course outcomes:Analyze results of consolidated financial statements for informing internal and external users of financial statementsAnalyze financial statement accounts using assertions related to the recognition, measurement, valuation, calculation, presentation, and disclosure of financial information for their accuracy and reliabilityContinue to work with the company you chose to use inbuildingyour portfolio. For detailed instructions, see the Final Project Guidelines and Rubric document.Specifically, the following critical elementsmust be addressed:II.Analysis of Financial Statements: For this milestone, you will continueto develop material to be included inyour financial analysis paper. You will need to research your chosen company andobtain the last few years (at least two) of financial statements (information that is available to the public online) in order to answer the following questions:A.Based on the informationthat you have gathered, explain the changes in financial ratios. Has anything changed in the few years of financial statements that you have obtained? What are the reasons for these changes?B.Based on the information you have gathered, analyze the changes in the financial reports regarding cash. Be sure to examine the statement of cash flows. What are the reasons for these changes?C.Based on the information you have gathered, analyze the changes in the financial reports regarding theaccounts receivableaccount balance. What are the reasons for these changes?D.Describe the type of inventory valuation methodthat your company uses and explain why itusesthis method. What are the benefits of this method?E.Based on industry trends, future plans of your company, and the information you have gathered, predicthow your company will perform in the following year compared to competitors. Guidelines for Submission:Prepare your paper using Microsoft Word. Itshouldbe 2 to 3 pagesin length, not including the cover page and reference page. Follow APA formatting guidelines using appropriate headings, double spacing, 12-point Times New Roman font, and one-inch margins. Support your arguments withat least threepeer-reviewedsources cited in APA format.