Evaluate the Overall Financial Health of a Company
Discuss a suicidal ideation and two examples associated with the ideation. Explain how you would address the ideations in the assessment process. Use references from the reading material and additional resources to support your response.
Describe some people you have seen on the subway or public places or other settings, where the person appeared to exhibit symptoms or behaviors of schizophrenia disorder. Describe the behaviors you observed and how it made you feel.
The objective of this team project is to use what you have learned to evaluate the overall financial health of a company using ratio analysis. The team will also use financial data to compare companies within the same industry, calculate projected results, determine if objectives will be met by a company, and recommend a course of action. There are four independent parts to this assignment.
Talon Inc. is a wholly owned subsidiary of Marble Co. The philosophy of Marble’s management is to allow the subsidiaries to operate as independent units. Corporate control is exercised through the establishment of minimum objectives for each subsidiary, accompanied by substantial rewards for success and penalties for failure. The time period for performance review is long enough for competent managers to display their abilities.
Each quarter, the subsidiary is required to submit financial statements. The statements are accompanied by a letter from the subsidiary president explaining the results to date, a forecast for the remainder of the year, and the actions to be taken to achieve the objectives if the forecast indicates that the objectives will not be met.
Marble management, in conjunction with Talon management, had set the objectives listed below for the year ending May 31, 2018. These objectives are similar to those set in previous years.
Sales growth of 20%
Return on stockholders’ equity of 15%
A long-term debt-to-equity ratio of not more than 1.0
Payment of a cash dividend of 50% of net income, with a minimum payment of at least $400,000
Talon’s controller has just completed the financial statements for the six months ended November 30, 2017, and the forecast for the year ending May 31, 2018. The statements follow.
After a cursory glance at the financial statements, Talon’s president concluded that not all objectives would be met. At a staff meeting of the Talon management, the president asked the controller to review the projected results and recommend possible actions that could be taken during the remainder of the year so that Talon would be more likely to meet the objectives.