# fin 400 week 7 crt Portfolio Project, Business & Finance Assignment Homework Help

This Portfolio Project has two parts: Calculations due this week in Module 7 and a 4- to 6-page essay due next week in module 8. While the calculation requirements of this assignment are important, equally important are your discussion and analysis of the quantitative results. You will submit two documents: 1) a spreadsheet containing your horizontal and vertical analysis (and perhaps your ratios) in Module 7 and 2) a word document containing your essay in Module 8. You will submit both parts separately. See the Portfolio Project Part One and Part Two grading rubrics, located in the Module 7 and Module 8 folders.

Directions:

For this assignment you will select to work on EITHER Polaris or Arctic Cat. Depending on which you choose, access the firm’s financial statements for fiscal years ending after December 31, 2014, from the firm’s website (Polaris.com & Arcticcat.com) or the SEC database (www.sec.gov). Use the most current 10K statements available on SEC or annual statements in Yahoo Finance. Complete the following for your chosen firm (Polaris or Artic Cat) in an Excel spreadsheet:

1. Horizontal and vertical analysis of the income statements for the past two years (all yearly balances set as a percentage of total revenues for that year) for both firms.
2. Horizontal and vertical analysis of the balance sheets for the past two years (all yearly balances set as a percentage of total assets for that year) for both firms.
3. Ratio analysis (eight ratios of your choosing) for the past two years PLUS a measurement for the creditworthiness of both firms as measured by Altman’s Z-score.

Much of this course has concentrated on learning the financial statements, primarily because there was not an accounting prerequisite. Because of this concentration, you may find this assignment challenging. However, if you understand the financial statements, then the horizontal and vertical analysis should be rather intuitive. For example, if you see sales rise by 20%, then shouldn’t you also see net income rise by 20% or more if the managers are effective at controlling costs?  If you see sales rise by 20% and assets rise by 40%, you have to ask why this is happening. It would appear that assets have risen too far given the sales that are generated from those assets—why did this occur? You may have to research that type of question and discuss it in your analysis.