Review and Practice

Maryland Creative Solutions (MCS) has provided you with background material on how its teams approach financial analysis. Using the Project 1 Review and Practice Guide , review the structure and purpose of the income statement and balance sheet. Make sure you also are familiar with the DuPont equation as well as these five groups of financial ratios: liquidity, efficiency, leverage, profitability, and market value. Study how to perform common-size and cash flow analyses. Finally, apply what you have learned so far by completing the exercises referenced in the Project 1 Review and Practice Guide.You must review the material provided by MCS and do the practice exercises so that you are

• prepared to have informed discussions with your team about company financial statements,
• understand what the statements reveal about operational efficiency, and
• can use this information to make recommendations for improvements.

Complete this review and practice by the end of Week 1.

REVIEW AND PRACTICE

You must complete the review and practice content to participate in the discussion in Step 3.Project 1 Review and Practice Guide

• Step 3: Participate in the Required Project 1 Discussion

  

  You have finished reviewing the material and performing the exercises but you have some questions. Participate in the Project 1 class discussion. Respond to the two questions below by posting in the discussion; then, respond to two of your classmates’ discussion posts by the end of the week.

  DISCUSSION

  Answer the following questions:

  1. Discuss the concepts that were most challenging for you in the readings and review material. How did the practice exercises help clarify these?
  2. What did you learn that will help you analyze LGI’s financial statements?

  Before you participate in the discussion activity read the MBA discussion guidelines.