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ACC 345 Project Guidelines and Rubric
Competencies
In this project, you will demonstrate your mastery of the following competencies:
Apply tools and techniques for repor�ng financial statement valua�on and projec�ons
Determine organiza�onal health using economic, industry, and financial analyses
Communicate business analyses and valua�on reports to inform business decisions
Overview
Accoun�ng professionals are o�en asked to provide financial statement analysis for a variety of reasons and audiences. Internally, such evalua�ons of a company’s health and value may be
used to inform decisions regarding redeployment of assets or improved opera�onal performance. Externally, they may be used in making credit or investment decisions.
You will have the opportunity to evaluate the overall health of the company and its future prospects. Keep in mind when preparing valua�on reports, you will more than likely be working on
a team. You will need to gather the necessary informa�on that has been assigned to you and report your findings to the rest of the team to determine whether to invest in the company or
not at this �me.
Directions
Complete the following in the same files—Project Workbook Template and Business Valua�on Template—that include your original work from all the milestones.
Note: You may choose to complete an assignment using a desktop program instead of SNHU’s virtual desktop (VDI); however, technical support will not be provided by SNHU if you select
this op�on.
You will prepare projected financial statements and cash flows for five years for the same company you have been researching throughout the milestones. Any discounts appropriate from
the research should be included in the valua�on as iden�fied below. Once you have gathered all the informa�on, you will prepare a professional report for your team.
For the final valua�on calcula�on, you will be es�ma�ng your selected company’s value by using an earnings-based approach, specifically the discounted cash flow model. You will be
applying all applicable discounts to arrive at a final indica�on of value.
You will have an opportunity to correct your answers from Milestone Two in the Project Workbook Template on the corrected tabs based on the feedback from your instructor.
Specifically, you must address the following rubric criteria:
Project Workbook Template
1. Correct all errors from Milestone Two by using the Corrected Balance Sheet, Corrected Income Statement, and Corrected Ra�os tabs. Highlight correc�ons in green or with an asterisk.
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2. Forecast income statements of the company for the next five years on the Prospec�ve Analysis tab. Use the historical statements as a guide with your external research on the
company and the industry. Include the following details in your response:
A. Forecast the annual revenue growth rate percentage each year over the next five years.
B. Forecast the annual gross profit margin as a percentage that you expect to see over the next five years.
C. Forecast the selling, general, and administra�ve (SG&A) expenses as a percentage of revenue over the next five years.
D. Forecast your company’s future interest expense each year for the next five years.
E. Forecast any addi�onal other income (expense) as determined is necessary.
3. Forecast the cash flow of the company for the next five years on the DCF (discounted cash flow) tab. Include the following details in your response:
A. Add back es�mated deprecia�on to the company’s forecasted net income.
B. Subtract out projected spending on capital expenditures for the company.
C. Subtract out or add back the future cash flow from financing expected for the company.
Note: If you received a perfect score for Milestone Two, you do not need to correct any errors. Simply note it in the designated sec�on within the workbook. You will receive full points for
this rubric criterion.
Business Valuation Template
Assumptions and Rationale
1. Explain all assump�ons used in the forecast and your ra�onale. Include the following details in your response:
A. Explain assump�ons for the Prospec�ve Analysis tab (revenue growth rate, gross profit margin, SG&A expenses, interest expense).
B. Explain assump�ons for the DCF tab (deprecia�on added back, capital expenditures, and debt reduc�on).
C. Explain assump�ons for the Valua�on Summary tab.
2. Explain all discounts that are used in the valua�on process and how they are derived. Include the following details in your response:
A. Include current discount rate.
B. Include discount for lack of marketability (DLOM) and discount for lack of control (DLOC).
C. Provide your ra�onale if you changed the given discount rates.
3. Provide evidence in your write up that all supported assump�ons are related to research.
4. Determine if the metrics have any correla�on with the company performance. Include the following details in your response:
A. Explain if the turnover rates relate to the company.
B. Explain if the advancement rates relate to the company.
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C. Explain if the diversity representa�on rates relate to the company.
5. Summarize the micro and macroeconomic factors that impact your industry.
6. Iden�fy historical global and/or domes�c major event(s) and relate it back to historical financial company health changes. Global and/or domes�c events include significant natural
disasters, global conflicts, and/or health crises. Consider the following ques�ons to guide your response:
A. What was the financial health of the company before global and/or domes�c major events?
B. What was the financial health of the company during global and/or domes�c major events?
C. What was the financial health of the company a�er global and/or domes�c major events?
7. Explain changes in consumer behavior pa�erns due to historical global and/or domes�c major event(s) that may impact your company’s projec�ons.
Analysis
8. Explain the difference between the current market price and the final valua�on. Include the following details in your response:
A. Provide today’s market price of the stock for the company.
B. Provide a ra�onale.
9. Explain financial qualita�ve informa�on in regulatory filings. Include the following details in your response:
A. Comment on any poten�al earnings management happening in the financial statements.
B. Comment on any other poten�al fraudulent ac�vity.
10. Explain how historical global and/or domes�c major event(s) in the industry may impact the company into the future. Consider the following ques�ons to guide your response:
A. Was there a major shi� with technology advances?
B. Did a compe�tor make a huge shi� in its products or services offered?
Business Valuation Team Report
1. Create visualiza�ons to show findings that are relevant to the valua�on team.
2. Create a professional report for the valua�on team that is easy to follow and clearly documents how you arrived at your final valua�on along with your recommenda�on. Include the
following detail in your response:
A. Include the metrics on how you projected the company’s revenue profit margins and cash flow.
B. Include a cover page.
C. Include all key elements (execu�ve summary, company overview, economic and industry trends, financial analysis, valua�on approaches and methods used, discounts and other
considera�ons, and appraisal conclusion).
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D. Include your recommenda�on on inves�ng in the company at this �me.
If you need wri�ng support, access the Academic Support module of your course.
What to Submit
To complete this project, you must submit the following:
Completed Project Workbook Template
Submit the same file submi�ed for Milestone Two with your instructor feedback and the following tabs completed: Corrected Balance Sheet, Corrected Income Statement, Corrected Ra�os,
Prospec�ve Analysis, DCF, Valua�on Summary.
Completed Business Valuation Template
Submit the same file submi�ed for Milestone One, Milestone Two, and Milestone Three with the Project sec�on completed of the Business Valua�on Template. The Project sec�on should
be 4- to 6-page Microso� Word document with double spacing, 12-point Times New Roman font, and one-inch margins within the completed template. Sources should be cited according to
APA style.
Valuation Team Report
Submit a 4- to 6-page Microso� Word document with double spacing, 12-point Times New Roman font, and one-inch margins that includes visualiza�ons to support your findings. Sources
should be cited according to APA style.
Project Rubric
Criteria Exemplary Proficient Needs Improvement Not Evident Value
Project Workbook Template:
Correct All Errors
N/A Corrects all errors from
Milestone Two by using the
Corrected Balance Sheet,
Corrected Income Statement,
and Corrected Ra�os tabs
(100%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on the Corrected
Balance Sheet, Corrected
Income Statement, and
Corrected Ra�os tabs (55%)
Does not a�empt criterion
(0%)
6
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Criteria Exemplary Proficient Needs Improvement Not Evident Value
Project Workbook Template:
Income Statements
N/A Forecasts income statements
of the company for the next
five years on the Prospec�ve
Analysis tab (100%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on the income
statements (55%)
Does not a�empt criterion
(0%)
6
Project Workbook Template:
Cash Flow
N/A Forecasts the cash flow of the
company for the next five years
on the DCF tab (100%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on the cash flow
(55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: All Assump�ons
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Explains all assump�ons used
in the forecast and ra�onale
(85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on assump�ons
(55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: All Discounts
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Explains all discounts that are
used in the valua�on process
and how they are derived
(85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on discounts
applicable to the company
(55%)
Does not a�empt criterion
(0%)
6
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Criteria Exemplary Proficient Needs Improvement Not Evident Value
Business Valua�on
Template: Supported
Assump�ons
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Provides evidence that all
supported assump�ons are
related to research (85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on the evidence
related to research for all
assump�ons (55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: Metrics
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Determines if the metrics have
any correla�on with the
company performance or
valua�on metrics (85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on if the metrics
have any correla�on with the
company performance or
valua�on metrics (55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: Micro and
Macroeconomic Factors
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Summarizes the micro and
macroeconomic factors that
impact an industry (85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on micro and
macroeconomic factors that
impact the industry (55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: Major Events
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Iden�fies historical global
and/or domes�c major event(s)
and relate it back to historical
financial company health
changes (85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on major events
and how they relate back to
the historical financial company
health changes (55%)
Does not a�empt criterion
(0%)
6
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Criteria Exemplary Proficient Needs Improvement Not Evident Value
Business Valua�on
Template: Consumer
Behavior
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Explains changes in consumer
behavior pa�erns due to
historical global and/or
domes�c major events that
may impact your company’s
projec�ons (85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on changes in
consumer behavior pa�erns
(55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: Current Market
Price
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Explains the difference
between the current market
price and your final valua�on
(85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on the difference
between the current market
price and your final valua�on
(55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: Financial
Qualita�ve Informa�on
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Explains financial qualita�ve
informa�on in regulatory filings
(85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on the financial
qualita�ve informa�on in
regulatory filings (55%)
Does not a�empt criterion
(0%)
6
Business Valua�on
Template: Impact the
Company
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Explains how historical global
and domes�c major events in
the industry may impact the
company into the future (85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on how historical
global and/or domes�c event(s)
in the industry may impact the
company into the future (55%)
Does not a�empt criterion
(0%)
6
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Criteria Exemplary Proficient Needs Improvement Not Evident Value
Business Valua�on Team
Report: Visualiza�ons
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Creates visualiza�ons to show
findings that are relevant to the
valua�on team (85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on findings that
are relevant to stakeholders
(55%)
Does not a�empt criterion
(0%)
6
Business Valua�on Team
Report: Professional Report
Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Creates a professional report
for the valua�on team that is
easy to follow and clearly
documented on how you
arrived at your final valua�on
(85%)
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
addi�onal details or
clarifica�on on the report to
valua�on team (55%)
Does not a�empt criterion
(0%)
6
Ar�cula�on of Response Exceeds proficiency in an
excep�onally clear and
insigh�ul manner (100%)
Clearly conveys meaning with
correct grammar, sentence
structure, and spelling,
demonstra�ng an
understanding of audience and
purpose (85%)
Shows progress toward
proficiency, but with errors in
grammar, sentence structure,
and spelling, nega�vely
impac�ng readability (55%)
Submission has cri�cal errors in
grammar, sentence structure,
and spelling, preven�ng
understanding of ideas (0%)
5
Cita�ons and A�ribu�ons Uses cita�ons for ideas
requiring a�ribu�on, with few
or no minor errors (100%)
Uses cita�ons for ideas
requiring a�ribu�on, with
consistent minor errors (85%)
Uses cita�ons for ideas
requiring a�ribu�on, with
major errors (55%)
Does not use cita�ons for ideas
requiring a�ribu�on (0%)
5
Total: 100%
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