Comprehensive Spreadsheet Problem
Complete a written report and explain the analysis you have completed during each of the course competencies (Lyft). This report should include appropriate graphs and provide at least three suggestions for the company moving forward. The report should follow APA formatting. Follow the format for creating and presenting a financial report as explained in Competency 3.3. These questions include:
- Will the company be able to finance growth from internally generated cash flows?
- To what extent is the firm dependent on external sources of funds such as debt and equity?
- Are any developmental plans constrained due to a shortage of available funds or cash?
- Are internal sources of cash sufficient to meet interest and principal payments in a timely manner?
- Are internal sources of cash sufficient to handle dividend payments? What is the likelihood that the payments can be increased?
- Is an appropriate level of debt being employed by the company?
- Why have sales followed the growth pattern indicated? How can the response of profits to changes in sales be explained?
- Does the information from the income statement, balance sheet, and statement of cash flows lead to the same conclusions? Are these consistent with the statement of owner’s equity?
- Are the cash flow trends favorable or unfavorable? Could the trend change in the near future?
- How close is the company to its operating break-even point? How much of the company’s expenses are fixed rather than variable?
General Strategy and Industry Analysis Questions
- Is the company vulnerable to foreign competition?
- Does the company possess any particular competitive advantages that allow or would allow it to consistently win over its competition? (These advantages could be obtained through such things as patents, brand names, production efficiency, dominant advertising, economies of scale and/or scope, and market position.)
- What is the strategic thrust of the company? Has it been successful? Is it likely to succeed in the future?
- How responsive and adaptable has management been?
- Are there important labor problems?
- How do the company’s sales and profits respond to increases in the rate of inflation?
- What is the competitive environment? Are there barriers to competition that enable one company or several companies dominate the market?
- How cyclical are the industry sales?
- Is the growth in industry sales in the pioneering, rapid success, or mature stage? Is there a chance of a shift from one stage to another in the near future?