Financial Statement Analysis

Assessment Part 2: 

This Competency Assessment assesses the following outcome(s):

MT480M1: Analyze financial statements to measure the financial performance of a business entity.

PC-1.2: Contribute to team goals and objectives through active participation and collaboration.

The ability to interact and solve problems together — even at a distance — is a key skill in today’s business environment. In this part of the assessment you have the opportunity to analyze financial data and present the rationale to deny a loan renewal request besides getting some practice operating as you were a member of a team.

Instructions: Read the scenario in the pdf provided below and then access the data spreadsheet and the denial letter template, as well as the grading rubric. Then, as if you were a member of a team, respond to the checklist items below.

Checklist:

• In a Microsoft^® Word^® document address the following as if you were a member of a team (although you alone are responsible for the deliverables) based on the scenario in the pdf provided:

-Provide the goals, resources, and timelines for the team project.

-Explain the communication protocol for team members.

-Explain how you resolved the problems on page #8 of the pdf.

• Access the denial letter template below and complete the loan denial letter.

As the loan officer, you must pass along the news in a business letter that is most professional and written in an objective manner. Please use values in the letter whenever possible.

• Access the data worksheet below and complete it.
• Using analysis of the data sheet, explain in your letter why you are denying the loan renewal based on:

-Accounts Receivable

-Accounts Payable

-Inventory

• Submit the three completed documents: (1) the Microsoft^® Word^® document explaining your team process, communication, and problem solving from bullet #1 (label as part a); (2) include the loan renewal denial letter (label as part 2b) and (3) the data worksheet (label as part 2c) to the Dropbox labelled as Assessment “MT480M1-2_CFO_your name” and submit to the M1-2 Dropbox.

Access the loan renewal denial letter template

Access the data worksheet

Access the assessment rubric

Minimum Submission Requirements

• Address all the checklist items.
• Include a strong thesis statement, introduction, and conclusion. The main points of the response should be developed and explained clearly in the denial letter with appropriate financial and accounting terminology.
• Support all arguments (no errors in logic) based upon the Statement of Cash Flows data.
• Exhibit strong higher-order critical thinking and include appropriate judgments, conclusions, and assessments based on the team’s analysis of the Balance Sheet and Statement of Cash Flows.
• Provide proper classifications, explanations, comparisons, and inferences based on the cash flow representations. Submission includes recognition of accounts and team’s work is reconciled back to the financial data provided.
• Your content should follow proper APA citation style. For assistance with APA formatting, go to the Writing Resources accessed through the Academic Success Center within the Academic Tools area of the course. APA formatting dictates that your paper includes a cover sheet, the paper is double spaced, in Times New Roman 12-point font, with correct citations, and uses Standard English with no spelling or punctuation errors.

If work submitted for this competency assessment does not meet the minimum submission requirements, it will be returned without being scored.

Plagiarism

Plagiarism is an act of academic dishonesty. It violates the University Honor Code, and the offense is subject to disciplinary action. You are expected to be the sole author of your work. Use of another person’s work or ideas must be accompanied by specific citations and references. Whether the action is intentional or not, it still constitutes plagiarism.

CRITERIA: Please be sure to include all the below

Based on the provided pdf team scenario:

Provides the goals, resources, and timelines for the team project.

Explains the communication protocol to be used by the team.

Explains how to resolve the problems on page 8 of the pdf.

Completes the denial letter.

[Uses the correct tone to the client in the denial letter demonstrating understanding of the financial ramifications for the company.]

Submits a correctly completed data sheet.

Analyzing the data sheet, explains why he/she is denying the loan based on: Accounts Receivable, Accounts Payable, and Inventory.

[Provides correct and logical reasoning regarding the analysis he/she used of Accounts Receivable, Accounts Payable, and Inventory, to deny the loan.]