HUMBER COLLEGE

FINANCIAL REPORTING AND ANALYSIS 3010: Case Study Reports (20%)

These are group assignments. They must be completed in groups of 4-6 students.
Individual work will not be accepted. Each group needs to complete both case study
reports
You are required to use the same group for both case study reports (you may choose a
different or the same group for the Presentation Assignment)
Students who have not indicated their group (sign up in Blackboard) will be assigned to
a group by Week 3
All members of the group will be assigned the same grade. Its the groups
responsibility to manage the workload distribution
A hard copy of the report is to be handed in at the start of class that its due to the
Professor. Emailed reports will not be accepted. Late case studies will be docked 10%
per day that they are late (including weekends) and will not be accepted beyond 1 week
late.
In addition to hard copies, the final reports must be submitted electronically to
Blackboard to ensure their academic integrity through Blackboards SafeAssign feature.
A hard copy of the Originality Report generated by Blackboard for your Case Study
Report must be attached to your Report when its handed in.
All work submitted requires a title page with the names of all group members and
the case name stated. Please # your pages and staple/paperclip your work
Cases will be distributed by me in class

Learning Outcomes:
Case study reports provide opportunity for students to:
Analyze key financial issues
Gain insight into case study analysis, including problem analysis, information synthesis,
and recommendation justification
Work effectively in teams to outline options and determine the most appropriate
solutions for key business situations involving financial analysis
Deliverables and Grading:

Strong Tie Ltd. due Oct 5 (10%)

1. Title page, name of case and name of group members
2. Prepare the following financial exhibits for 2006, 2007 and 2008:
i. Table showing company key ratios (see Suggested Financial Ratio
Formulas handout) for 2006, 2007 and 2008 and compared to industry
averages
ii. Vertical analysis of income statements and balance sheets
iii. Horizontal analysis of income statements and balance sheets
iv. ROE analysis
1

v. Cash flow statements for 2007 and 2008

Note all ratios should be calculated using year-end figures; yearly
averages should not be used
3. Prepare a 2-to-3 page memo as requested by Mr. Johnstone. The memo should
be divided into sections describing liquidity, asset management, long-term debt
paying ability, profitability and short-term and long-term recommendations
Grading (100%):
Accuracy of Financial Data 25%

Ratio table 5%

Vertical analysis 5%

Horizontal analysis 5%

ROE analysis 5%

Cash flow statements 5%

Thoroughness of Analysis 50%

Liquidity 10%

Asset management 10%

Long-term debt paying ability 10%

Profitability 10%

Recommendations 10%

Layout and Writing Quality 25%

Memo layout 5%

Grammatical and spelling errors 10%

Writing style 10%

Selecting a Pharmaceutical Company from Northeast Asia for Investment due Nov 16
(10%)
1. Title page, name of case and name of group members
2. Prepare financial measures tables for the 3 companies in the same format as
shown in case Exhibit 5.
3. Perform vertical analysis of income statements and balance sheets for the 3
companies from FY2005 to FY2008.

4. Perform horizontal analysis of income statements and balance sheets for the 3
companies from FY2005 to FY2008.
5. Assuming the role of a financial analyst at Blacksmith Partners LLC, prepare a 2to-3 page memo that analyzes the financial condition of the 3 companies and
makes recommendations about which company to choose. The memo should be
divided into key sections describing the interpretations of key financial ratios
used in the assignment questions. Which pharmaceutical company would you
recommend to Clift?
6. Describe the factors other than financial analysis that Clift needs to consider
when selecting a company in which to invest.
Grading (100%):
Accuracy of Financial Data 15%

Financial measures table 5%

Vertical analysis 5%

Horizontal analysis 5%

Thoroughness of Analysis 60%

Analysis of 3 companies 40%

Recommendations 10%

Other factors to consider 10%

Layout and Writing Quality 25%

Memo layout 5%

Grammatical and spelling errors 10%

Writing style 10%

Of note:
1. Plagiarism and academic dishonesty will not be tolerated. The consequences are
detailed in http://www.humber.ca/admissions/academic-regulation
2. Please allow one week after due date for this assignment to be marked and your grades
to be posted on Blackboard