Team Project Find a public company that interests you and assess the financial health of the firm by interpreting the financial statements and evaluating the financial performance.a. Construct or find a sources and uses statement for the company for the last two years.b. Put together or find the last cash flow statement and explain what broad or holistic insights can be derived from them.c. In a more micro analysis effort, interpret why certain balance sheet items have either increased or decreased based on the financial position of the company.Looking at the last four years of Financial statements,a. Calculate the current and quick ratio at the end of each year. How has the companys short-term liquidity changed over this period?b. Utilize as many of the ratios in Table 2.5 on page 71 as you feel are needed to determine strengths and weaknesses with your company selected based on industry averages and trends.c. Calculate the ROE and ROA for all four years and show side by side comparisons and interpret the findings.d. Break down the ROE into three separate areas Profit Margin, Asset Turnover, and Financial Leverage. Compare year to year, do you find any trends?e. How do the findings compare with the industry averages? Explain why you selected the proposed industry. If the company does not have a clear comparable industry then compare with three closest competitors.f. Find two different current events that demonstrate why financial managers within your company are making the financial decisions you have discovered.

g. Choose two industry current events that would help explain why your company is making the financial decisions you have discovered.Based on your findings above, prepare Pro Forma statements for the next three fiscal years.a. Demonstrate succinctly why you made the projections you show. (Defend your forecast.)b. Determine the external financing, if needed, and show calculations.Looking at the prior four fiscal years,a. Calculate the sustainable growth rate and actual growth rate in each year.b. Compare the company’s sustainable growth rate with its actual growth rate in sales. What growth problems does the company face?c. If financing is needed, should they use debt or equity financing? Please defend your selection with pros and cons of each. If financing is not needed, how should the company financial management dispose of the excess cash?Summarize your final analysis, interpretations, and decisions that need to occur moving forward. Demonstrate clearly how the first four parts of the analysis relate to each other in your interpretations and projections.Each team will have 15-20 minutes to address the class. You can use a power point presentation or handouts. Each member should contribute equally in the preparation and presentation. If any member of the team fails to contribute adequately, please inform me. A team survey will occur at the end of class for each team member to complete. Based on the survey and blackboard discussion, each team member will be graded separately. Minutes must be posted on blackboard for each meeting. I would suggest members take turns preparing them.GRADING OF PAPER (Double spaced, 12 font, typed, and no more than 10 pages total). Rubric can be found at the end.Team Projecta. Construct or find a sources and uses statement for the company for the last two years.b. Put together or find the last cash flow statement and explain what broad or holistic insights can be derived from them.c. In a more micro analysis effort, interpret why certain balance sheet items have either increased or decreased based on the financial position of the company.a. Calculate the current and quick ratio at the end of each year. How has the companys short-term liquidity changed over this period?b. Utilize as many of the ratios in Table 2.5 on page 71 as you feel are needed to determine strengths and weaknesses with your company selected based on industry averages and trends.c. Calculate the ROE and ROA for all four years and show side by side comparisons and interpret the findings.d. Break down the ROE into three separate areas Profit Margin, Asset Turnover, and Financial Leverage. Compare year to year, do you find any trends?e. How do the findings compare with the industry averages? Explain why you selected the proposed industry. If the company does not have a clear comparable industry then compare with three closest competitors.f. Find two different current events that demonstrate why financial managers within your company are making the financial decisions you have discovered.g. Choose two industry current events that would help explain why your company is making the financial decisions you have discovered.a. Demonstrate succinctly why you made the projections you show. (Defend your forecast.)b. Determine the external financing, if needed, and show calculations.a. Calculate the sustainable growth rate and actual growth rate in each year.b. Compare the company’s sustainable growth rate with its actual growth rate in sales. What growth problems does the company face?c. If financing is needed, should they use debt or equity financing? Please defend your selection with pros and cons of each. If financing is not needed, how should the company financial management dispose of the excess cash?Each team will have 15-20 minutes to address the class. You can use a power point presentation or handouts. Each member should contribute equally in the preparation and presentation. If any member of the team fails to contribute adequately, please inform me. A team survey will occur at the end of class for each team member to complete. Based on the survey and blackboard discussion, each team member will be graded separately. Minutes must be posted on blackboard for each meeting. I would suggest members take turns preparing them.GRADING OF PAPER (Double spaced, 12 font, typed, and no more than 10 pages total). Rubric can be found at the end.