Financial Statement Analysis

 

It was created in 1965 when the creator of Frito Lays, Herman Lay, and the creator of Pepsi-Cola, Don Kendall, produced a deal to combine their companies. This led PepsiCo to become one of the leading companies that have beverages and convenience food. PepsiCo created many named brands, more than 500 types of brands. This company markets to everyone, they do not specify a specific type of customer because they are trying to reach out to everyone to purchase their products. In 1966, they became popular because they came out with Doritos, and it was a hit with the people. That same year they came out with amazing advertising for Mtn Dew and that is where PepsiCo became known for their ads.

Products: some well-known brands are

· Lays

· Pepsi

· Doritos

· Gatorade

· Walkers

· Quakers

· Tostitos

· Aquafina

· Mirinda

· Mtn Dew

And they have so many more products

Competitors: the competitors are other competitors that are like PepsiCo, some examples are

· Keurig Dr. Pepper

· Monster Beverage

· Coca-Cola

· Nestle

· RedBull

· Danone

· Britvic

· General Mills

· Conagra

· Unilever

Total Revenues:

TTM: 83,644,000

2021: 79,474,000

Net Income:

TTM: 9,714,000

2021: 7,618,000

Classes of Stock Outstanding:

Price of the Stock:

Dividends Paid:

Current Ratio: 0.83077803

Acid-Test Ratio:

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Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

• When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
• We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

• The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
• We will have a different writer write the paper from scratch.
• Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

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Unit 6 Discussion 1 – Financial Statement Analysis

Instructions:

Read the Unit 6_Forge Group (Part B)Preview the document [PDF] case study for this unit (Note: you will also use this same case study for this unit’s and next unit’s assignments).

Answer the following question:

Identify some of the problems that the Forge Group may be facing. State-specific information from the case study to support the potential problems you noted.
Please be sure to validate your opinions and ideas with citations and references in APA format.

Adapted from IMA
IMA EDUCATIONAL CASE JOURNAL VOL. 8, NO. 1, ART. 2, MARCH 2015
ISSN 1940-204X
Forge Group Ltd Case Study (A)The Revealing Nature of Numbers
Suzanne Maloney
University of Southern Queensland
Toowoomba, Australia, 4350.
[email protected]
THE FORGE GROUP LTD SUMMARY
In 2012-2013, Forge Group Limited had more than 2,000 employees working across eight countries on four continents. The pride in the growth story is evident, as Forge Group’s 2012 Annual Report (released in September 2013) lists accomplishments in what is described as a groundbreaking year. The main milestones give a snapshot of the types of projects the company was involved in (see Figure 1). At the time of listing (June 26, 2007), Forge Group Ltd (FGL) shares traded for $0.56. (All monetary amounts discussed herein are in Australian dollars. To convert to another currency, visit www.x-rates.com.) The shares peaked at $6.98 on March 6, 2013, valuing the company at $600 million. In less than a year, FGL was placed in a trading halt (February 11, 2014). Voluntary administrators and receivers were appointed.
THE ENGINEERING AND CONSTRUCTION INDUSTRY
The engineering and construction sector provides significant economic activity in many countries. Large-scale engineering and construction projects—including highways, bridges, railways, airports, harbors, production facilities, and office and apartment buildings—provide employment opportunities and attract large capital investment. The quantum of resources employed in this industry and the profound affect they have on society means that there are strict compliance, regulatory, environmental, and tax requirements on those operating in the sector. The governments of many countries publicly funded a number of large-scale infrastructure projects in the aftermath of the Global Financial Crisis (GFC) to stimulate the economy.
Joint ventures and public/private partnerships are common in the industry to reduce the risk of large-scale projects and to ensure adequate capital and expertise. Major contracts generally involve a number of different companies with primary contractor and sub-contractor status, all tendering and quoting on various stages of work in a project. This makes the industry highly competitive, and therefore it is vital to have appropriate costing and project management expertise.
Mining companies also took advantage of the cheaper finance post GFC and the upswing in demand for minerals and resources. Large-scale mining projects have been the driving force for some economies, especially in Australia. But with the construction of a number of the large projects nearing completion (and moving into production phase), there is a drop in engineering and construction spending. In Australia in 2013-2014, engineering and construction spending was $128 billion, dropping $1 billion from the previous year. This increased competition in the sector and, therefore, demand for lower-priced contracts and shorter completion times.
The market value of engineering and construction companies are based partly on their future secured order book. “Order book” is a term used in the engineering and construction sector to capture the company’s future work and the dollar value of the work. The future work is contracted through the normal selling of services and through “tendering” for large-scale works needed by governments and large private companies. If a project is very large, it may be divided into segments with a separate tender process for each segment. Companies have to carefully consider the risk attached to each segment of the larger project and the interrelationship of each of the segments. A company can be held liable to another company if their segment completion is delayed and the other company cannot complete its work on time, as per their contract, because of the delay. For example, when building a tunnel, the riskier segment may be blasting the rock and strengthening the actual tunnel. Excavating the ground and surfacing the road may not carry the same risk but could be held up if the blasting and strengthening is not completed on time.
In comparison to a retail or manufacturing concern, the products being sold are large capital works that tend not to be completed within a neat 12-month period. This means that there needs to be payment points built into the contracts. These are called “milestones.” Once a project milestone is reached, it triggers a point when the engineering and construction company can invoice the purchaser and recognize the revenue in its accounts. The product cost (Cost-of-Goods-Sold) expensed against this revenue will contain material, labor, equipment costs, and sub-contractor costs. These costs are all capitalized into inventory at the time they are incurred but not expensed until they reach a milestone. A lot of dollars, long-term time horizons, subjective milestones, and the application of large capital equipment costs contribute to the overall business risk in the sector. Many companies have suffered as a result of stalled projects, unforeseen circumstances or problems, poor costing of the work, and mismanaged cash flow.
Within the industry, there is usually significant take-over activity. This is driven in part by companies not performing well and/or insolvency and also by normal merger and acquisition activity. Smaller companies find it difficult to compete with larger companies for the larger projects and generally need to combine or merge in some way or stay small. This adds further risk and places the financial statements and the order book under increased scrutiny as business valuations rely on this information.
THE FORGE GROUP LTD (FGL)
The company was a success story. It listed on the Australian stock exchange on June 26, 2007, from a private construction company called AiConstruction. It was a well-run company that needed access to more capital if it was to continue to grow. Within a year, it made its first acquisition by taking over Abesque Engineering. The company survived the Global Financial Crisis and leveraged to the subsequent mining and construction boom led by China’s appetite for minerals and resources. Over the next few years, the company grew organically and in April 2010 another construction company called Clough bought 13% (10.5 million shares) of FGL ordinary shares, thus becoming the largest shareholder. Clough continued to purchase shares in FGL until it divested its total holding of 35% in March 2013. Clough management explained its divestment by indicating that expectations of joint ventures between the two companies did not eventuate, and, therefore, the equity holding was cashed in to allow the pursuit of other objectives.
In January 2012, FGL undertook a major acquisition by purchasing CTEC Pty Ltd. In essence, the acquisition meant taking over two major projects. The Diamantina Power Station (DPS) Project in Queensland, Australia, and the West Angelas Power Station (WAPS) Project in the Pilbara region of Western Australia. It was expected that these major projects would add $7.5 million and $10.8 million to earnings before interest, tax, depreciation, and amortization (EBITDA) in 2012 and 2013, respectively. The purchase price was $16 million up-front with further payments due on the meeting of specified
performance targets (total paid was $32.26 million). This increased FGL’s order book significantly, and FGL’s share price rose in response. In June 2013, FGL acquired Taggart Global for $43 million. This purchase meant that FGL was now diversifying into asset management and into other economies.
SHARE MARKET INFORMATION
The historical share price chart since listing is shown in Figure 2.
The market closing prices, major announcements, and significant shareholding changes are listed in chronological order in Table 1.
CTEC PURCHASE
In the wash up of the demise of FGL is the attention being paid to two main contracts: The Diamantina Power Station (DPS) Project in Queensland, Australia, and the West Angelas Power Station (WAPS) Project in the Pilbara region of Western Australia. Both projects were acquired after FGL took over CTEC Pty Ltd on January 13, 2012. The purchase of CTEC was to change the business model by bringing sub-contracting work in-house with the intended consequence of taking out the “middle man” and thereby increasing earnings (by negating sub-contractor margins). The CTEC purchase
payment terms required an up-front payment of $16 million with subsequent payments conditional on meeting performance criteria (possible further payment of $40 million in total). CTEC’s prior year (June 30, 2011) EBIT was $2 million, with expected EBITDA at year end 2012 and 2013 to be $18.4 million and $24.8 million, respectively. The DPS and WAPS projects were to increase this expected EBITDA by $7.5 million in 2012 and $10.8 million in 2013.
Instead cost overruns and poor budgeting meant that the projects’ revised 2013 estimates showed a $61 million project margin loss for the DPS project and a $41.7 million project margin loss on the WAPS project. The cost overruns on these two projects lead to the profit downgrade and contributed to the resulting shortage of cash.
Added to that was the discovery of an early payment to the vendors of CTEC Pty Ltd before its performance conditions were met. Further, the payment of bonuses to the previous Managing Director, Peter Hutchinson, of $375,000 was made for a successful acquisition and integration. These payments are the subject of further investigations by the liquidator.
DPS AND WAPS COSTING AND BUDGETING
In any business the costing and budgeting systems are critical to success. The FGL administrator report for 2013/2014 (year ending January 2014) shows that the:
• Actual work-in-progress income for the period was $126 million below management forecast.
• Labor costs were $70 million over budget.
• Material costs were $55 million over budget.
• Work-in-progress overheads were $22 million over budget.
FINANCIAL INFORMATION
The financial statements for 2010-2014 are presented in Tables 2-5 in your Excel workbook.

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Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

• Plagiarism free papers
• Timely delivery
• Any deadline
• Skilled, Experienced Native English Writers
• Subject-relevant academic writer
• Adherence to paper instructions
• Ability to tackle bulk assignments
• Reasonable prices
• 24/7 Customer Support
• Get superb grades consistently

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

• When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
• We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

• The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
• We will have a different writer write the paper from scratch.
• Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

GET A PERFECT SCORE!!!

---