Analysis and interpretation of financial statements

Analysis and interpretation of financial statements(you can change the topic after you see the requirement) – 2,500 word report (50%). This individual assignment will involve writing a report to evaluate the performance of a real-life company. All submissions must be presented in typescript (Word format), 12pt, 1.5 line spacing. 1. Requirements: – (a) Provide an introduction with a background of the business in question (e.g. strategy, prospects, SWOT analysis). (20 marks) -(b) Explain how the cash flow statement interfaces with the statement of financial position and income statement. Illustrate your discussion with an example taken from the company’s financial statements.(10 marks) -(c) Calculate at least three profitability ratios of your choice to support your discussion. Discuss the profitability position of the company. (20 marks) -(d) Calculate at least three effectiveness/efficiency ratios of your choice to support your discussion. Discuss the efficiency/effectiveness position of the company. (20 marks) -(e) Calculate at least three liquidity/solvency ratios to support your discussion.Discuss the ability of the company to meet its financial obligations. (20 marks) -(f) Highlight any one specific issue from the financial statements which may limit the usefulness of the ratio analysis. Provide clear examples/references (10 marks)- TOTAL: 100 MARKS. 2.Guideline:  Research updated literature on “Analysis and interpretation of financial statements”.  You are expected to choose one company from the ones below: (a). Morrisons PLC https://www.morrisons-corporate.com/investor-centre/ (b). Smith & Nephew PLC http://www.smith-nephew.com/investor-centre/ (c). Glencore PLC https://www.glencore.com/en/investors  Annual reports are available under the heading of ‘Investor Relations’. You should inform the lecturer of your company’s choice as soon as possible.  The financial information you need should refer to, at least, THREE (03) consecutive years of the company’s operation; to allow you to compare/analyse/comment on the business financial trend.  An online copy of the most recent company’s financial statements (not a web link), which served the basis for the requirements below, should be submitted as part of this coursework.  University rules on plagiarism apply (please refer to postgraduate information on Moodle for further details). All materials used to prepare this coursework need to be accordingly referenced.