Financial Modelling I - Assignment #4

Notes:
1. You should submit your assignment electronically using the drop-box on the D2L page for
the course.
2. Every student should submit their own individual assignment. However, feel free to work
with other students in the class to construct your model. You may work with students from
other sections of the course. Make sure that you place your name and student number on
the assignment. Also, only submit one file, with a title such as: Assignment #1 Your
Name.xlsx

Alans Sporting Goods (ASG) is a retailer of new and used sporting equipment in the Toronto area. Alan,
the sole owner of ASG started his company 8 years ago and has been very happy with the rapid growth.
However, there have been some cash flow issues. In fact, Alan had to inject additional capital recently
to keep things afloat. Having heard of your expertise in financial analysis, he would like you to provide a
financial analysis of his company and make some recommendations to improve the situation.

1. The financial statements for Alans Sporting Goods (ASG) are attached
2. Format the statements in an appropriate way and have all the subtotals and totals
calculated. Also connect the income statement and balance sheet through the retained
earnings account and the accumulated depreciation account.
3. From these two statements generate:
a. Common Size Financial Statements (all accounts as a % of sales)
b. Accounting Cash Flow Statement, Cash Flow to Equity, Cash Flow to all Investors
c. Financial Ratios (as covered in the class #4 videos and any others you think are
appropriate (refer to your corporate finance text)
4. Analyze the data and list the strengths and weaknesses of the business. Discuss any
recommendations you would make to improve the company. Approximately one page
this should be in memo form written to Alan.

Your model should be well formatted and well documented. This means that the model should be clear
and organized. Use colors where necessary. In addition, your assignment should include a title page that
includes your name, the date and professor name as well as a brief description (2-3 sentences) outlining
the general purpose of the assignment. Please state any assumptions that you have made directly on
the spreadsheet to which they correspond.