Financial Management – Memo Assignment (need calculation) 4

Paper, Order, or Assignment Requirements

 
please read the instruction and the textbook (chapter 12) that I uploaded, and prepare the 2 pages Memo, since there are some calculation has to made before writing the memo, so I add 2 pages charge for the calculation, thank you

 

Financial Management and Markets

Memo Assignment

 

Objective: Assume you are the CFO for Computron. Review the analysis of Jenny Cochran andprepare a memo addressing the following issues.

1.Identify the strengths and weaknesses of Computron using:

a.Ratio analysis

b.Extended Du Pont equation

c.Free cash flow

d.Economic value added (EVA)

2.Construct a forecast for 2014 utilizing the techniques (e.g. AFN and percentage of sales method) from Chapter 12

a.Compare this forecast to the estimated financial performance for 2014 provided on Page 129.

i.Evaluate the feasibility of the estimated financial performance for 2014 (likely to occur)

b.Determine whether either forecast will resolve the financial issues from 2012-2013

3.Recommend alternatives, if necessary

 

Source: Computron financial statements in the mini case from Chapter 2 on pages 90-92 and the additional information for this mini case from Chapter 3 on pages 127-129.

 

Format Basics for Memo:

To: Gary Meissner, Computron¡¦s chairman of the board

From: Your Name, CFO

Date: March 16, 2015

Re: Financial Status of Computron

 

Specific financial ratios or other calculations should be used to support your evaluation. Thememo should not exceed two pages, double-spaced.Additional financial information may beprovided in an appendix to support the recommendations in the memo.

 

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