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GROUP PROJECT 28% of your overall mark

(Due Wednesday, November 30th, @ 7:00 pm)


Purpose: The project requires students to analyze trends in corporate performance, to evaluate
corporate financial decisions, to discuss non-financial statement issues that would be important to
potential investors, to compare two companies within an industry, and to make investment
recommendations.
You will work in groups of 4 people ONLY. No exceptions. If there are group(s) with less than 4 people
than these groups will be divided up in order to accommodate a group of 4. The group(s) to be broken
up will be based upon the student with the highest sum total of their student number within groups of
less than 4 people. i.e. St# 800411 the sum total for that student will be 8+0+0+4+1+1=14.
Within the Content section of A2L the following documents have been made available for you in order
to complete this assessment;
a)
b)
c)
d)
e)
f)

Question sheet which you are currently reading


Excel template titled Group Project Template.
Memo template to complete your written commentary.
Group Project Grading Rubric
Peer evaluation form
Canadian Company listing

INSTRUCTIONS
a) Enroll within A2L your group members. Once you have done so you will then be required to
email me your chosen companies in order to receive prior approval so that there are no two
groups who will have the same set of companies to analyze.

This step is DUE on Wednesday, October 26 11:00 pm.

b) Once I have reviewed your company choices and responded back to you via email you can then
begin your research.
c) Obtain or download the most recent annual report for two (2) CANADIAN companies at
http://www.annualreports.com/ . They must operate and be in the same industry and sector.
For your convenience I am including a list of companies that you can choose from and is located
in the content section with Group Project Files titled Canadian Company Listing.

Questions

1. Which two companies has your group chosen? What is the industry and sector group that both of
these companies operate in?
2. What types of products or services does each company sell? In what geographical region(s) do
their products or services primarily serve in?
3. Analyze at least 3 (three) items on each income statement for your two (2) companies that would be
important to an investor, and discuss whether your companys performance related to these items
appeared to be improving, deteriorating, or remaining stable. Justify your answer.
4. Analyze at least 3 (three) items on each balance sheet for your two (2) companies that would be
important to an investor, and discuss whether your companys performance related to these items
appeared to be improving, deteriorating, or remaining stable. Justify your answer.
5. Analyze each of your companies investing and financing activities for the most recent year as
identified in the statement of cash flows, specifically identifying the two largest investing activities
and the two largest financing activities. Discuss whether you agree or disagree with the investing
and financing strategies that each of your companies appear to be employing.
6. Identify 2 (two) items not included in (or derived from) the financial statements for each of your
companies that you think would be important to someone considering whether to invest in the
company. Discuss your reasons for believing why these two items about each company would be
important in making an investment decision. (Hint: you might want to consider items discussed in
other online business resources. i.e. yahoo finance, company websites, business classes.)
7. Complete the financial ratios for each of your companies using the excel template provided. For
each company calculate the ratios for two (2) consecutive years. Once you have calculated the ratios
briefly describe what each financial ratio is expressing. Compare your ratios to the industry standard
ratios. (Standard ratios will be provided to you by your Professor).
8. Complete the horizontal analysis for each of your companies using the excel template provided and
customized for your financial situation. What is the most significant item that jumps out at you?
Justify your answer in writing by focusing on at least 1 item that has contributed to this material
change. Hint: this answer will come directly from the financial statements of the annual report.
9. Complete the vertical analysis excel template for each of your companies. What is the most
significant item that jumps out at you? Justify your indicating at least 1 item that has contributed to
this material change. Hint: this answer will come directly from the financial statements of the
annual report.
10. List and explain 3 factors that can affect the financial performance of the industry. These factors can
be economic, environmental, political and/or social factors.
11. You have to make a decision to invest in one of your groups companies, which company would
you choose and why? Your commentary should include (but not be limited too) a
discussion about the future and past profitability, liquidity and solvency financial factors you
calculated earlier.

Submission Requirements
A hard copy of your project is due in class on Wednesday, November 30th, @ 7:00 pm). This will
include;
1) The completed memo template as provided for you with answers to each of 11 individual questions
separated by company. Responses to these questions should be supported by referencing each
answer with the annual report page number where you theorized your answer from.

2) On the memo template beside the company name include the URL to the annual report for each
company being discussed.
3) The completed excel template provided for you to complete the Horizontal, Vertical & ratio
analyses.
4) A completed peer evaluation form.
NOTE: If there is a member of your group who does not seem to be contributing his/her fair share of the
workload inform the person of your observations. Make it clear to him/her that his/her contribution is
necessary and he/she needs to fairly contribute if he/she wishes to receive a fair evaluation. If the
person simply fails to contribute after that, document your communications with him/her and inform me
accordingly. Do not allow shortcomings of another individual to affect your grade.
Submissions received past 7:15 pm on November 30th will be considered late and will be subject to the
written assignment policy as stated in the course outline. For your convenience it is reproduced below.
Written Assignments submitted beyond the time it is due will be assessed a 5% deduction each day in
the overall weight of the evaluation. For example the written Group Project is worth 28% of your mark,
if it is submitted 2 days late the project for your whole group will now be worth 18% (28% - (2 days *
-5%) = 18%).