2016-2017 Winter Term FISV 2010 FINANCE Mountain Sports Company Required Professional Criteria All students are required to submit a Financial Statement Analysis Case Study for grading. No late submissions will be accepted. No exceptions to this policy. Failure to turn in this assignment on its due date means that the students will receive a grade of “0” for the project. All students are required to submit via email on due dates, 3 separate Excel Worksheets of Financial Ratio Calculations for Pre-Approval as follows: Worksheet 1- Common-Sized Balance Sheets for Mountain Sports Company for Fiscal Years ($ in millions) Worksheet 2- Common-sized Income Statements for Mountain Sports Company for Fiscal Years ends December 31 ($ in millions) Worksheet 3- Ratios for Time-Trend Analysis for Mountain Sports Company for Fiscal Years ends December 31 Students who do not submit all 3 required worksheets for pre-approval on or by due dates and receive approval within the pre-approval grading period, cannot submit the required Financial Statement Analysis Case Study for Grading. Excel Worksheets 1 & 2 & 3 1st draft submission due via email Tuesday January 17 by 5:00PM Excel Workbook last date for final workbook approval Sunday Jan 29, 2017 12:00 noon Final bound Project Due Date: Thursday February 9, 2017 at beginning of class & call of roster All aspects of this project are to be completed as an INDIVIDUAL assignment. No student collaboration or co-authoring is allowed. Any Evidence of student’s collaboration/co-authoring will be treated as “cheating” (please see syllabus notice that consequences of cheating, plagiarism, collaboration & co-authoring in this course The project must be a 12-pt font (Times Roman Numeral), double-spaced. Estimated total project page count is approximately 20+ pages (includes charts, Financial Statements, Appendices, Reference page (MLA format) 1. Page margins are: 1.5” Left, 1.0” Right 1.0” Top 1.0” Bottom Your final project should be professionally spiral bound with clear cover and black back. (e.g. Kinkos, Staples etc. provide this service at a nominal cost) * Up to 15% of overall project grade will be attributed to Professionalism (e.g. correct grammar, spelling, proper presentation format (e.g. dividers, citations). Failure to meet Professional Criteria will result in a final project grade reduction of 1-15 points. Financial Statement Analysis Case Study FORMAT: Title/Cover Page (cover page only - 14 Times New Roman Font) FISV 2010 Finance Financial Statement Analysis Case Study ( 2 double spaces) Mountain Sports Company (2 double-spaces) Prepared by (your name) ( 1 double-space) Presented to Professor Jean Holt February 9, 2017 Financial Statement Analysis Case Study FORMAT: Table of Contents ( green font are instructions only for placement of required Tab/Dividers ) Table of Contents page number Tab/Divider 1 Instruction only: Insert ...

1. 2016-2017 Winter Term
FISV 2010 FINANCE
Mountain Sports Company

2. Required Professional Criteria
All students are required to submit a Financial Statement
Analysis Case Study for grading. No late submissions will be
accepted. No exceptions to this policy. Failure to turn in this
assignment on its due date means that the students will receive a
grade of “0” for the project.
All students are required to submit via email on due dates, 3
separate Excel Worksheets of Financial Ratio Calculations for
Pre-Approval as follows:
Worksheet 1- Common-Sized Balance Sheets for Mountain
Sports Company for Fiscal Years ($ in millions)
Worksheet 2- Common-sized Income Statements for Mountain
Sports Company for Fiscal Years ends December 31 ($ in
millions)
Worksheet 3- Ratios for Time-Trend Analysis for Mountain
Sports Company for Fiscal Years ends December 31
Students who do not submit all 3 required worksheets for pre-
approval on or by due dates and receive approval within the pre-
approval grading period, cannot submit the required Financial
Statement Analysis Case Study for Grading.
Excel Worksheets 1 & 2 & 3 1st draft submission due via
email Tuesday January 17 by 5:00PM
Excel Workbook last date for final workbook approval Sunday
Jan 29, 2017 12:00 noon
Final bound Project Due Date: Thursday February 9, 2017
at beginning of class & call of roster
All aspects of this project are to be completed as an
INDIVIDUAL assignment.

3. No student collaboration or co-authoring is allowed.
Any Evidence of student’s collaboration/co-authoring will be
treated as “cheating”
(please see syllabus notice that consequences of cheating,
plagiarism, collaboration & co-authoring in this course
The project must be a 12-pt font (Times Roman Numeral),
double-spaced. Estimated total project page count is
approximately 20+ pages (includes charts, Financial Statements,
Appendices, Reference page (MLA format)
1. Page margins are:
1.5” Left,
1.0” Right
1.0” Top
1.0” Bottom
Your final project should be professionally spiral bound with
clear cover and black back. (e.g. Kinkos, Staples etc. provide
this service at a nominal cost)
* Up to 15% of overall project grade will be attributed to
Professionalism (e.g. correct grammar, spelling, proper
presentation format (e.g. dividers, citations). Failure to meet
Professional Criteria will result in a final project grade
reduction of 1-15 points.
Financial Statement Analysis Case Study
FORMAT: Title/Cover Page
(cover page only - 14 Times New Roman Font)

4. FISV 2010 Finance
Financial Statement Analysis Case Study
( 2 double spaces)
Mountain Sports Company
(2 double-spaces)
Prepared by (your name)
( 1 double-space)
Presented to Professor Jean Holt
February 9, 2017
Financial Statement Analysis Case Study
FORMAT: Table of Contents
( green font are instructions only for placement of required
Tab/Dividers )
Table of Contents
page number
Tab/Divider 1 Instruction only: Insert Tab/Divider Here and
Label
Case Study Company Profile

5. page number
Tab/Divider 2 Instruction only: Insert Tab/Divider Here and
Label
Financial Statements Analysis page
number
Balance Sheet -Horizontal Analysis
page number
Income Statement -Horizontal Analysis
page number
Tab/Divider 3 Instruction only: Insert Tab/Divider Here and
Label
Comparative Ratio Analysis
page number
Short term solvency, or liquidity ratios Liquidity Ratios
page number
Current Ratio page number
Quick Ratio
page number
Cash Ratio page number
Net Working Capital to total assets page
number
Asset Management, or turnover, ratios
page number
Inventory Turnover page number
Day’s Sales in Inventory
page number
Receivables Turnover
page number
Day’s Sales in Receivables
page number
Fixed Asset Turnover
page number
Total asset Turnover
page number

6. Leverage Ratio Analysis
page number
Total Debt Ratio page number
Debt-to-Equity Ratio
page number
Equity Multiplier
page number
Long-term debt ratio
page number
Times Interest Earned
page number
Cash Coverage page
number
Profitability Ratio Analysis
page number
Profit Margin page number
Return on Assets
page number
Return on Equity
page number
Operating Profit Margin
page number
Net Profit Margin
page number
EBIT Return on Assets
page number
Tab/Divider 4 Instruction only: Insert Tab/Divider Here and
Label
Recommendations & Financing Forecast
page number
Tab/Divider 5 Instruction only: Insert Tab/Divider Here and
Label
Citation Page
page number

7. Instruction only: Insert sub- Tab/Divider Here and Label- This
page is required only if the student has used additional
resources from on-line research or web images that require
MLA citation.
Appendices
Instruction only: Insert sub- Tab/Divider Here and Label
Appendix A:
Mountain Sports Company
Historical Balance Sheets- Common size
page number
Instruction only: Insert sub- Tab/Divider Here and Label
Appendix B:
Mountain Sports Company
Historical Income Statement-Common Sized
page number
Instruction only: Insert sub- Tab/Divider Here and Label
Appendix C:
Mountain Sports Company
Comparative Ratio Analysis
page number

8. FISV 2010
Financial Statement Analysis Case Study Assignment-
Technical Guide
This project requires you to analyze Financial Statements from
a Manager’s Perspective. Using basic Financial Ratio Analysis,
you will write a report for the assigned case study that (1)
evaluates the company’s past 5 years financial performance, (2)
identifies strengths and weaknesses, (3) identifies areas for
performance improvements and (4) makes appropriate
recommendations to improve performance.
Tab/ Divider 1
Case Study Company Profile
This section introduces the reader to the type of Company
whose financial data will be analyzed.
For this project the hypothetical company profile is provided
below and should be cut/pasted into Tab 1 of the student report:
Mountain Sports Company
Mountain Sports Company (MSC) offers beautiful, functional
apparel for all mountain and alpine adventures and the outdoor
life. Technical performance, quality and versatility are in every
piece of apparel that Mountain Sports Company makes.
Founded in 1997 by two outdoor enthusiasts from Colorado,
Mountain Sports Company (MSC) is headquartered in Colorado.
In 2008 MSC became a publically traded company when it
launched an IPO to fund its expansion strategic plan. All of
MSC products are made in the U.S.A. at either its headquarters
manufacturing facilities in Colorado and it’s the west coast

9. production facility in Seattle, Washington (opened in December
2014).
MSC products are sold currently sold via catalog, on-line and in
select mountain town stores across the western United States
and in western Canada.
MSC promotes its brand awareness in mountain town resorts
with discounts to qualified professionals such as: outdoor
educators, environmental professionals, fitness instructors,
government/military, outdoor industry professionals,
media/writer/photographers, professional outdoor athletes and
ski patrollers/instructors. MSC apparel is featured and reviewed
in multiple outdoor magazines and connects on social media.
Once a year, MSC sponsors a charitable Alpine Sports
Challenge event that draws participants from across the globe;
all proceeds from sales of its products sold at the event is
donated to local charities to purchase sports equipment for
disadvantaged children.
Mountain Sports Company doesn’t just promote the outside,
they strive to protect it. MSC partners with the below
organizations in their missions to advance the outdoor industry
as well as protect our wild surroundings.
Protect Our Winters was founded by pro snowboarder Jeremy
Jones to unite and engage the snow sports communities around
the world in the fight against climate change. By mobilizing
individuals, local businesses, corporations and ski resorts, POW
aims to bridge the gap between the winter sports community and
the action being taken to address the problem, through activism
and community-based initiatives.
The Conservation Alliance’s mission is to engage businesses to

10. fund and partner with organizations to protect wild places for
their habitat and recreation values. The Conservation Alliance is
a group of outdoor industry companies that disburses its
collective annual membership dues to grassroots environmental
organizations. We direct our funding to community-based
campaigns to protect threatened wild habitat, preferably where
outdoor enthusiasts recreate. The Alliance was founded in 1989
by industry leaders REI, Patagonia, The North Face, and Kelty,
who shared the goal of increasing outdoor industry support for
conservation efforts. We now have more than 185 member
companies, and plan to disburse $1.5 million in 2013.
Jackson, Wyoming is home to one of the world’s first vertical
greenhouses located on a sliver of vacant land next to a parking
garage. This 13,500 sq. ft. three-story stacked greenhouse
utilizes a 1/10 of an acre to grow an annual amount of produce
equivalent to 5 acres of traditional agriculture. Vertical Harvest
sells locally grown, fresh vegetables year round to Jackson area
restaurants, grocery stores and directly to consumers through
on-site sales. Vertical Harvest replaces 100,000 lbs of produce
that is trucked into the community each year. In addition to
fresh lettuce and tomatoes, Vertical Harvest produces jobs,
internships and educational opportunities. The greenhouse
employs 15 individuals with intellectual and physical
disabilities.
The mission of the Outdoor Industry Association (OIA) is to
ensure the growth and success of the outdoor industry. Today,
OIA is the leading voice of the outdoor industry and serves
more than 4,000 manufacturers, distributors, suppliers, sales
representatives and retailers. Every day, OIA works with
members to benefit the industry by:
· Advocating for issues critical to the future of the outdoor
industry
· Building stronger business leaders
· Preserving, promoting and raising industry standards

11. · Celebrating, inspiring and growing the active outdoor
community
FISV 2010 Finance
Financial Statement Analysis Case Study Requirements
Student Guide to Preparing Financial Ratio Calculations and
Written Financial Analysis
(Grading Rubric # 3 Accuracy and Presentation Financial Ratios
1. Using the Historical Balance Sheet and Income Statement
data provided for the Case Study, calculate Ratios in Excel or
other Spreadsheet format and include in Appendices as showed
in directions included in each TAB
2. Use the results of your Ratio Analysis to write a Financial
Analysis as shown in directions included in each TAB
Tab/ Divider 2 & Appendices A, B
1. Common-Sized Balance Sheet (see textbook Chapter 3
example for Prufrock Corporation
Textbook NOTE: Ratios for project must be carried 4-decimal
paces
Using Excel, create a balance sheet showing all items as a
percentage of total assets.
Insert this worksheet in the section of your Project titled:
Appendix A Mountain Sports Company
Historical Balance Sheets- Common size
In Tab 2 Financial Statement Analysis Balance Sheet -
Horizontal Analysis - Write a horizontal analysis of these 5-
year Balance Sheets. Refer to Textbook’s Chapter 3 Prufrock
Corporation for tips on statistical writing techniques/Financial
Analysis
2. Common-Sized Income Statement see Chapter 3 example for
Prufrock Corporation text NOTE: Ratios for project must be

12. carried 4-decimal paces
Using Excel, create an Income Statement showing all items of
total operating income and operating expenses expressed as a
percentage of net sales (also called “Revenues”)
Insert this worksheet in the section of your Project titled:
Appendix B Mountain Sports Company
Historical Income Statement-Common Sized
In Tab 2 Financial Statement Analysis Income Statement -
Horizontal Analysis - Write a horizontal analysis of these 5-
year Income Statements. Refer to Textbook’s Chapter 3 for tips
on statistical writing techniques/Financial Analysis
Tab/ Divider 3 & Appendix C
3.Key Ratio Analysis (Tab 3) To calculate Key Ratios/Appendix
C, see textbook for formulas pages
112-113 in text/ Second Edition. NOTE: Ratios for project
must be carried 4-decimal paces
To Write Financial Analysis to interpret meaning of Ratios, see
textbook pages 57-68
Using Excel, prepare Financial Ratios for Time-Trend Analysis
for Mountain Sports Company
Insert this worksheet in the section of your Project titled:
Appendix C Mountain Sports Company
Comparative Ratio Analysis
In Section Key Ratio Analysis (Tab 3) - Write a horizontal
analysis of Key Ratios
Tab/Divider 4
Recommendations & Financing Forecast
Based on your findings from your Historical Ratio Analysis

13. (Tab 2 & 3), write a summary of the specific positive AND
negative trends/issues that can affect future profitability of
Mountain Sports Company .
Identify potential financing issues and make recommendations
to improve performance. Identify financing consequences if
negative trends are not reversed. (estimated 2-4 pages)

14. Equations for Calculating Key Ratios
(also found in Textbook pages 112-113 in text/ Second Edition)
Liquidity Ratios
Efficiency Ratios
Inventory Turnover = Cost of Goods Sold
Inventory
Day’s Sales in Inventory = 365 Days

15. Inventory Turnover
Accounts Receivable Turnover = Net Sales
Accounts Receivable
Leverage Ratios
Profitability Ratios (expressed as a percentage)
Gross Profit Margin = Net Sales - Cost of Goods Sold
Net Sales
Operating Profit Margin = EBIT
Net Sales
Net Profit Margin = Net Income
Net Sales
EBIT Return on Assets (EROA) = EBIT
Total Assets
Return on Assets (ROA) = Net Income
Total Assets
Return on Assets (ROE) = Net Income
Total Equity

16. s
Liabilitie
Current
Inventory
-
Assets
Current
Ratio

17. Quick
s
Liabilitie
Current
Assets
Current
Ratio
Current
=
=
Assets
Fixed
Net
Sales
Net
Turnover
Asset
Fixed
Assets
Total
Sales
Net
Turnover
Asset
Total
Turnover
Receivable
Account
Days
365

18. g
Outstandin
Sales
s
Day'
=
=
=
Expense
Interest
on
Depreciati
EBIT
Coverage
expense
Interest
EBIT
Earned
Interest
Equity
Total
Assets
Total
Multiplier
Equity

19. Total
Debt
Total
Ratio
Equity
-
Assets
Total
Debt
Total
Ratio
Debt
Total
+
=
=
=
=
=
Cash
Times
Equity
Debt

20. 2016-2017 Winter Term
FISV 2010 FINANCE
Student Guide to Preparing
Financial Statement Analysis- Case Study
prepared by Professor Jean Holt
Mountain Sports Company

21. Required Professional Criteria
All students are required to submit a Financial Statement
Analysis Case Study for grading. No late submissions will be
accepted. No exceptions to this policy. Failure to turn in this
assignment on its due date means that the students will receive a
grade of “0” for the project.
All students are required to submit via email on due dates, 3
separate Excel Worksheets of Financial Ratio Calculations for
Pre-Approval as follows:
Worksheet 1- Common-Sized Balance Sheets for Mountain
Sports Company for Fiscal Years ($ in millions)
Worksheet 2- Common-sized Income Statements for Mountain
Sports Company for Fiscal Years ends December 31 ($ in
millions)
Worksheet 3- Ratios for Time-Trend Analysis for Mountain
Sports Company for Fiscal Years ends December 31
Students who do not submit all 3 required worksheets for pre-
approval on or by due dates and receive approval within the pre-
approval grading period, cannot submit the required Financial
Statement Analysis Case Study for Grading.
Excel Worksheets 1 & 2 & 3 1st draft submission due via
email Tuesday January 17 by 5:00PM
Excel Workbook last date for final workbook approval Sunday
Jan 29, 2017 12:00 noon
Final bound Project Due Date: Thursday February 9, 2017
at beginning of class & call of roster

22. All aspects of this project are to be completed as an
INDIVIDUAL assignment.
No student collaboration or co-authoring is allowed.
Any Evidence of student’s collaboration/co-authoring will be
treated as “cheating”
(please see syllabus notice that consequences of cheating,
plagiarism, collaboration & co-authoring in this course
The project must be a 12-pt font (Times Roman Numeral),
double-spaced. Estimated total project page count is
approximately 20+ pages (includes charts, Financial Statements,
Appendices, Reference page (MLA format)
1. Page margins are:
1.5” Left,
1.0” Right
1.0” Top
1.0” Bottom
Your final project should be professionally spiral bound with
clear cover and black back. (e.g. Kinkos, Staples etc. provide
this service at a nominal cost)
* Up to 15% of overall project grade will be attributed to
Professionalism (e.g. correct grammar, spelling, proper
presentation format (e.g. dividers, citations). Failure to meet
Professional Criteria will result in a final project grade
reduction of 1-15 points.
Financial Statement Analysis Case Study

23. FORMAT: Title/Cover Page
(cover page only - 14 Times New Roman Font)
FISV 2010 Finance
Financial Statement Analysis Case Study
( 2 double spaces)
Mountain Sports Company
(2 double-spaces)
Prepared by (your name)
( 1 double-space)
Presented to Professor Jean Holt
February 9, 2017
Financial Statement Analysis Case Study
FORMAT: Table of Contents
( green font are instructions only for placement of required
Tab/Dividers )
Table of Contents
page number

24. Tab/Divider 1 Instruction only: Insert Tab/Divider Here and
Label
Case Study Company Profile
page number
Tab/Divider 2 Instruction only: Insert Tab/Divider Here and
Label
Financial Statements Analysis page
number
Balance Sheet -Horizontal Analysis
page number
Income Statement -Horizontal Analysis
page number
Tab/Divider 3 Instruction only: Insert Tab/Divider Here and
Label
Comparative Ratio Analysis
page number
Short term solvency, or liquidity ratios Liquidity Ratios
page number
Current Ratio page number
Quick Ratio
page number
Cash Ratio page number
Net Working Capital to total assets page
number
Asset Management, or turnover, ratios
page number
Inventory Turnover page number
Day’s Sales in Inventory
page number
Receivables Turnover
page number
Day’s Sales in Receivables
page number
Fixed Asset Turnover

25. page number
Total asset Turnover
page number
Leverage Ratio Analysis
page number
Total Debt Ratio page number
Debt-to-Equity Ratio
page number
Equity Multiplier
page number
Long-term debt ratio
page number
Times Interest Earned
page number
Cash Coverage page
number
Profitability Ratio Analysis
page number
Profit Margin page number
Return on Assets
page number
Return on Equity
page number
Operating Profit Margin
page number
Net Profit Margin
page number
EBIT Return on Assets
page number
Tab/Divider 4 Instruction only: Insert Tab/Divider Here and
Label
Recommendations & Financing Forecast
page number
Tab/Divider 5 Instruction only: Insert Tab/Divider Here and

26. Label
Citation Page
page number
Instruction only: Insert sub- Tab/Divider Here and Label- This
page is required only if the student has used additional
resources from on-line research or web images that require
MLA citation.
Appendices
Instruction only: Insert sub- Tab/Divider Here and Label
Appendix A:
Mountain Sports Company
Historical Balance Sheets- Common size
page number
Instruction only: Insert sub- Tab/Divider Here and Label
Appendix B:
Mountain Sports Company
Historical Income Statement-Common Sized
page number
Instruction only: Insert sub- Tab/Divider Here and Label
Appendix C:
Mountain Sports Company
Comparative Ratio Analysis
page number

27. FISV 2010
Financial Statement Analysis Case Study Assignment-
Technical Guide
This project requires you to analyze Financial Statements from
a Manager’s Perspective. Using basic Financial Ratio Analysis,
you will write a report for the assigned case study that (1)
evaluates the company’s past 5 years financial performance, (2)
identifies strengths and weaknesses, (3) identifies areas for
performance improvements and (4) makes appropriate
recommendations to improve performance.
Tab/ Divider 1
Case Study Company Profile
This section introduces the reader to the type of Company
whose financial data will be analyzed.
For this project the hypothetical company profile is provided
below and should be cut/pasted into Tab 1 of the student report:
Mountain Sports Company
Mountain Sports Company (MSC) offers beautiful, functional
apparel for all mountain and alpine adventures and the outdoor
life. Technical performance, quality and versatility are in every
piece of apparel that Mountain Sports Company makes.
Founded in 1997 by two outdoor enthusiasts from Colorado,
Mountain Sports Company (MSC) is headquartered in Colorado.
In 2008 MSC became a publically traded company when it

28. launched an IPO to fund its expansion strategic plan. All of
MSC products are made in the U.S.A. at either its headquarters
manufacturing facilities in Colorado and it’s the west coast
production facility in Seattle, Washington (opened in December
2014).
MSC products are sold currently sold via catalog, on-line and in
select mountain town stores across the western United States
and in western Canada.
MSC promotes its brand awareness in mountain town resorts
with discounts to qualified professionals such as: outdoor
educators, environmental professionals, fitness instructors,
government/military, outdoor industry professionals,
media/writer/photographers, professional outdoor athletes and
ski patrollers/instructors. MSC apparel is featured and reviewed
in multiple outdoor magazines and connects on social media.
Once a year, MSC sponsors a charitable Alpine Sports
Challenge event that draws participants from across the globe;
all proceeds from sales of its products sold at the event is
donated to local charities to purchase sports equipment for
disadvantaged children.
Mountain Sports Company doesn’t just promote the outside,
they strive to protect it. MSC partners with the below
organizations in their missions to advance the outdoor industry
as well as protect our wild surroundings.
Protect Our Winters was founded by pro snowboarder Jeremy
Jones to unite and engage the snow sports communities around
the world in the fight against climate change. By mobilizing
individuals, local businesses, corporations and ski resorts, POW
aims to bridge the gap between the winter sports community and
the action being taken to address the problem, through activism

29. and community-based initiatives.
The Conservation Alliance’s mission is to engage businesses to
fund and partner with organizations to protect wild places for
their habitat and recreation values. The Conservation Alliance is
a group of outdoor industry companies that disburses its
collective annual membership dues to grassroots environmental
organizations. We direct our funding to community-based
campaigns to protect threatened wild habitat, preferably where
outdoor enthusiasts recreate. The Alliance was founded in 1989
by industry leaders REI, Patagonia, The North Face, and Kelty,
who shared the goal of increasing outdoor industry support for
conservation efforts. We now have more than 185 member
companies, and plan to disburse $1.5 million in 2013.
Jackson, Wyoming is home to one of the world’s first vertical
greenhouses located on a sliver of vacant land next to a parking
garage. This 13,500 sq. ft. three-story stacked greenhouse
utilizes a 1/10 of an acre to grow an annual amount of produce
equivalent to 5 acres of traditional agriculture. Vertical Harvest
sells locally grown, fresh vegetables year round to Jackson area
restaurants, grocery stores and directly to consumers through
on-site sales. Vertical Harvest replaces 100,000 lbs of produce
that is trucked into the community each year. In addition to
fresh lettuce and tomatoes, Vertical Harvest produces jobs,
internships and educational opportunities. The greenhouse
employs 15 individuals with intellectual and physical
disabilities.
The mission of the Outdoor Industry Association (OIA) is to
ensure the growth and success of the outdoor industry. Today,
OIA is the leading voice of the outdoor industry and serves
more than 4,000 manufacturers, distributors, suppliers, sales
representatives and retailers. Every day, OIA works with
members to benefit the industry by:
· Advocating for issues critical to the future of the outdoor

30. industry
· Building stronger business leaders
· Preserving, promoting and raising industry standards
· Celebrating, inspiring and growing the active outdoor
community
FISV 2010 Finance
Financial Statement Analysis Case Study Requirements
Student Guide to Preparing Financial Ratio Calculations and
Written Financial Analysis
(Grading Rubric # 3 Accuracy and Presentation Financial Ratios
1. Using the Historical Balance Sheet and Income Statement
data provided for the Case Study, calculate Ratios in Excel or
other Spreadsheet format and include in Appendices as showed
in directions included in each TAB
2. Use the results of your Ratio Analysis to write a Financial
Analysis as shown in directions included in each TAB
Tab/ Divider 2 & Appendices A, B
1. Common-Sized Balance Sheet (see textbook Chapter 3
example for Prufrock Corporation
Textbook NOTE: Ratios for project must be carried 4-decimal
paces
Using Excel, create a balance sheet showing all items as a
percentage of total assets.
Insert this worksheet in the section of your Project titled:
Appendix A Mountain Sports Company
Historical Balance Sheets- Common size
In Tab 2 Financial Statement Analysis Balance Sheet -
Horizontal Analysis - Write a horizontal analysis of these 5-
year Balance Sheets. Refer to Textbook’s Chapter 3 Prufrock
Corporation for tips on statistical writing techniques/Financial
Analysis

31. 2. Common-Sized Income Statement see Chapter 3 example for
Prufrock Corporation text NOTE: Ratios for project must be
carried 4-decimal paces
Using Excel, create an Income Statement showing all items of
total operating income and operating expenses expressed as a
percentage of net sales (also called “Revenues”)
Insert this worksheet in the section of your Project titled:
Appendix B Mountain Sports Company
Historical Income Statement-Common Sized
In Tab 2 Financial Statement Analysis Income Statement -
Horizontal Analysis - Write a horizontal analysis of these 5-
year Income Statements. Refer to Textbook’s Chapter 3 for tips
on statistical writing techniques/Financial Analysis
Tab/ Divider 3 & Appendix C
3.Key Ratio Analysis (Tab 3) To calculate Key Ratios/Appendix
C, see textbook for formulas pages
112-113 in text/ Second Edition. NOTE: Ratios for project
must be carried 4-decimal paces
To Write Financial Analysis to interpret meaning of Ratios, see
textbook pages 57-68
Using Excel, prepare Financial Ratios for Time-Trend Analysis
for Mountain Sports Company
Insert this worksheet in the section of your Project titled:
Appendix C Mountain Sports Company
Comparative Ratio Analysis
In Section Key Ratio Analysis (Tab 3) - Write a horizontal
analysis of Key Ratios

32. Tab/Divider 4
Recommendations & Financing Forecast
Based on your findings from your Historical Ratio Analysis
(Tab 2 & 3), write a summary of the specific positive AND
negative trends/issues that can affect future profitability of
Mountain Sports Company .
Identify potential financing issues and make recommendations
to improve performance. Identify financing consequences if
negative trends are not reversed. (estimated 2-4 pages)

33. Equations for Calculating Key Ratios
(also found in Textbook pages 112-113 in text/ Second Edition)
Liquidity Ratios
Efficiency Ratios
Inventory Turnover = Cost of Goods Sold

34. Inventory
Day’s Sales in Inventory = 365 Days
Inventory Turnover
Accounts Receivable Turnover = Net Sales
Accounts Receivable
Leverage Ratios
Profitability Ratios (expressed as a percentage)
Gross Profit Margin = Net Sales - Cost of Goods Sold
Net Sales
Operating Profit Margin = EBIT
Net Sales
Net Profit Margin = Net Income
Net Sales
EBIT Return on Assets (EROA) = EBIT
Total Assets
Return on Assets (ROA) = Net Income
Total Assets

35. Return on Assets (ROE) = Net Income
Total Equity
s
Liabilitie
Current
Inventory
-

36. Assets
Current
Ratio
Quick
s
Liabilitie
Current
Assets
Current
Ratio
Current
=
=
Assets
Fixed
Net
Sales
Net
Turnover
Asset
Fixed
Assets
Total
Sales
Net
Turnover
Asset
Total
Turnover
Receivable
Account

37. Days
365
g
Outstandin
Sales
s
Day'
=
=
=
Expense
Interest
on
Depreciati
EBIT
Coverage
expense
Interest
EBIT
Earned
Interest
Equity
Total
Assets
Total
Multiplier

38. Equity
Total
Debt
Total
Ratio
Equity
-
Assets
Total
Debt
Total
Ratio
Debt
Total
+
=
=
=
=
=
Cash
Times
Equity
Debt