In this task you will use the “Competition Bikes Inc. Storyline” case study to prepare a summary report based on your evaluation of the company’s operations.

Task:

Note: Be sure to submit a copy of your Excel workbook when submitting your JET2 Task 1 work.  The evaluator will need a copy of your data to ensure correct evaluation.

A.  Prepare a summary report in which you do the following:

1.  Evaluate the company’s operational strengths and weaknesses based on the following:

a.  Horizontal analysis results

b.  Vertical analysis results

c.  Trend analysis results

d.  Ratio analysis results

2.  Analyze the working capital of Competition Bikes Inc. Consider the following in your analysis:

•  Ways to improve the working capital

•  Ways to use excess working capital to generate an increase in profits

3.  Evaluate the internal controls for the Competition Bikes Inc. purchasing system.

a.  Recommend corrective actions for any weaknesses.

b.  Identify the risks to the company.

i.  Discuss how to mitigate the risks arising from internal control weaknesses.

4.  Analyze compliance with Sarbanes–Oxley requirements.

a.  Recommend corrective actions for noncompliant areas.

B.  If you use sources, include all in-text citations and references in APA format.

Financial Analysis

Paper details:

Preamble:
1. Obtain the most recent Financial Statements of an unquoted company and submit these as
an appendix to your assignment.
2. Identify a comparable makeshift listed company.
Requirement:
Applying any three methods of valuing unquoted companies, place a value on the unquoted
company, to the extent that the information in the accounts provided would permit.
30%
In what particular circumstances would you suggest that each one of the three methods you have
chosen would be most appropriate? Briefly explain the limitations of each method.
10%
Explain the Efficient Market hypothesis and discuss its relevance to the valuation of companies.
10%
Total (50%)
TASK 2
Preamble:
Research into a recent (since 2005) acquisition case involving any two companies:
Requirement:
0 Explain the possible motivations that may have engendered the move to acquire. 10%
0 Explain the type of acquisition, e.g. vertical integration, horizontal integration or a
diversification, etc.
15%
Explain the defence strategies used or that could have been used by the target company to
frustrate the move by the acquirer to acquire.
(maximum of five strategies) 15%
0 Describe the extent to which the acquirer’s motivations to acquire have so far been satisfied
or not, giving examples.
10%
Total (50%)

Financial Analysis

Paper details:

Preamble:
1. Obtain the most recent Financial Statements of an unquoted company and submit these as
an appendix to your assignment.
2. Identify a comparable makeshift listed company.
Requirement:
Applying any three methods of valuing unquoted companies, place a value on the unquoted
company, to the extent that the information in the accounts provided would permit.
30%
In what particular circumstances would you suggest that each one of the three methods you have
chosen would be most appropriate? Briefly explain the limitations of each method.
10%
Explain the Efficient Market hypothesis and discuss its relevance to the valuation of companies.
10%
Total (50%)
TASK 2
Preamble:
Research into a recent (since 2005) acquisition case involving any two companies:
Requirement:
0 Explain the possible motivations that may have engendered the move to acquire. 10%
0 Explain the type of acquisition, e.g. vertical integration, horizontal integration or a
diversification, etc.
15%
Explain the defence strategies used or that could have been used by the target company to
frustrate the move by the acquirer to acquire.
(maximum of five strategies) 15%
0 Describe the extent to which the acquirer’s motivations to acquire have so far been satisfied
or not, giving examples.
10%
Total (50%)