Accounting Question

I was unable to attach a video that provided additional instructions. I will try again later. I only need Assignment 1A completed by 10/27. I will upload assignment 1B next which isn’t due until 11/3/2024.

JWI 530: Financial Management I
Assignment 1B
Executive Memo and Presentation
Due: Monday, 9:00 am (eastern), Week 6 (20% of Final Grade)
Overview
A critical financial accounting skill is the ability to read, analyze, and make actionable decisions from
published financial statements. Business leaders gain valuable information from the annual reports of
direct competitors, companies that operate in similar fields, and companies in which they are considering
an investment or partnership.
Instructions
You are a financial analyst with RedRock, a global investment company. RedRock is investigating the
energy drink business to determine which company to add to its new “RR+ Global Consumer Goods”
fund. You are assigned to complete a financial analysis of two companies in the energy drink business,
Monster Beverage Corporation (MNST) and Celsius Holdings, Inc. (CELH). The financial analysis was
started by your summer intern, who had to return to college, and you will be finishing his work. Both
companies use a December fiscal year-end and report their financial statements in thousands of dollars.
The analysis period is from 2020 through 2023.
Lena Gerard, the Managing Director, has specifically asked for a financial analysis presentation of four
key areas:
1.
2.
3.
4.
Profitability: Gross Margin Ratio
Profitability: Selling, Marketing & Promotional Expenses as a % of Net Sales (Ratio)
Collections Management: Accounts Receivable Turnover
Cash Flow: Net Cash Provided by Operating Activities as a % of Net Sales (Ratio)
You will organize your work into TWO components:
•
Part A: Financial Analysis Snapshot and Initial Findings using data from the companies’ annual
reports (Due: Monday, 9:00 am (eastern), Week 5; worth 10% of Final Grade)
•
Part B: Executive Memo and brief Video Presentation of your analysis (Due: Monday, 9:00 am
(eastern), Week 6; worth 20% of Final Grade)
Before starting your work on Assignment 1A, carefully read the instructions for both 1A and 1B. Your
deliverables for Assignment 1B are directly connected to the work you will complete for Assignment 1A.
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This
document is subject to change based on the needs of the class.
JWI 530 – Assignment 1B (1246)
Page 1 of 5
JWI 530: Financial Management I
Assignment 1B
Assignment 1, Part B: Executive Memo and Presentation
Present a synopsis of your analysis in an executive memo you would feel comfortable submitting to your
CEO. You may organize the memo as you see fit, but it must follow the principles of good business
communication. A template has been provided as an example of an outline, but it is not required that you
follow this model exactly. Be sure to include your recommendation to the CEO in your memo, preferably
in the opening paragraph and the summary. To support your executive memo, prepare 5 slides and
record a brief video presentation highlighting the key points of your findings.
For your executive memo, answer the following 12 questions organized under four key topics:
1. Profitability: Gross Margin Ratio
a. What are both companies’ Gross Margin ratios for 2020-2023?
b. Which company has a better Gross Margin trend?
c. How can Celsius improve its Gross Margin?
Tip: A higher Gross Margin is preferable. Gross Margin is the Gross Profit divided by Net Sales.
How can Celsius improve its Gross Profit relative to its Net Sales?
2. Profitability: Selling, Marketing & Promotional Expenses as a % of Net Sales
a. Which company spends more of each Revenue dollar on Selling, Marketing, &
Promotional expenses?
b. How have Monster and Celsius positioned their energy drinks in the marketplace?
c.
What caused Celsius’ Selling, Marketing & Promotional Expenses to jump in 2022?
Tip: Read the “Reconciliation of GAAP SG&A to non-GAAP SG&A” in the Q4 2023 Earnings
Release for Celsius (CELH) and “Selling, General and Administrative Expenses” section of Item 7
in the 2023 Form 10-K for Celsius (CELH) to learn about this one-time cost.
3. Collections Management: Accounts Receivable Turnover
a. What are both companies’ Accounts Receivable Turnover ratios for 2021-2023?
b. Which company has a better Accounts Receivable Turnover trend?
c. How can Monster (MNST) improve its Accounts Receivable Turnover?
Tip: A high Accounts Receivables Turnover is desirable because it indicates higher incoming
cash flow to pay the bills. This ratio can be increased by increasing Net sales, decreasing
Accounts Receivable, or both. What business process changes can Monster make to increase
Net sales and decrease Accounts Receivables?
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This
document is subject to change based on the needs of the class.
JWI 530 – Assignment 1B (1246)
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JWI 530: Financial Management I
Assignment 1B
4. Cash Flow: Net Cash Provided by Operating Activities as a % of Net Sales
a. What is the net cash provided by operating activities as a % of Net Sales for both
companies from 2020 to 2023?
b. Which company has a better net cash provided by operating activities as a % of Net
Sales trend from 2021 to 2023?
c.
Why did Celsius’ net cash provided by operating activities drop to $-96 million in 2021?
For your slides and video presentation, complete the following tasks:
1.
Create up to 5 PowerPoint slides to support your financial presentation.




2.
Highlight your key findings from your Financial Analysis Snapshot (Assignment 1A) and your
Executive Memo. Focus on the most critical insights that would be helpful for Lena Gerard,
Managing Director. Your PowerPoint slides should complement your Financial Analysis
Snapshot and your Executive Memo.
Assume Lena Gerard, Managing Director will have access to all documents, so just hit the
main points.
Keep your slides legible. Avoid tiny fonts and too much text. Use the tables and charts from
your Summary Sheet in Assignment 1A to communicate data trends. Use bullets to make
your main points.
Keep it brief, using a maximum of 5 slides for the Four Key Topics outlined above and a
Summary with your recommendation.
Record your financial presentation using ZOOM or PowerPoint
 Record both the PowerPoint deck and your webcam feed simultaneously.
 Practice your presentation. You may record as many times as you wish before submitting.
 Maintain eye contact, speak conversationally and professionally, use an engaging tone, and
dress appropriately.
 Your video must be no longer than 5 minutes.
Submission Requirements
There are 3 submission files for assignment 1B:
1. Your Executive Memo should be no more than 2 pages, single-spaced, using 10- or 12-point font.
You may also include an appendix with additional references, graphs, charts, and tables for
additional support if needed.
2. Your Video Recording should not exceed 5 minutes in length.
3. Your PowerPoint Deck must not exceed 5 slides (not including the cover page or references, if
desired).
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This
document is subject to change based on the needs of the class.
JWI 530 – Assignment 1B (1246)
Page 3 of 5
JWI 530: Financial Management I
Assignment 1B
RUBRIC ASSIGNMENT 1B
20% of
Course Grade
Assignment 1B
CRITERIA
Honors
High Pass
Pass
Low Pass
Unsatisfactory
1. Discuss the Profit
Structure of Both
Organizations’
Gross Margins
Meets HP
criteria, plus
includes
additional
insights and
analyses
demonstrating
additional
research and
knowledge.
Excellent
analysis of
the gross
margin
structures of
both
organizations;
has no critical
omissions.
Satisfactorily
identifies and
assesses the
gross margin
structures of
both
organizations;
contains
minor
omissions.
Partially
identifies and
assesses the
gross margin
structure of at
least one
organization.
Does not
submit, or
incorrectly
identifies and
assesses the
gross margin
structures of
both
organizations.
Meets HP
criteria, plus
includes
additional
insights and
analyses
demonstrating
additional
research and
knowledge.
Excellent
assessment of
both
companies’
selling,
marketing &
promotional
expenses as a
% of Net sales;
has no critical
omissions.
Satisfactorily
assesses both
companies’
selling,
marketing &
promotional
expenses as a
% of Net sales;
contains minor
omissions.
Partially
assesses at
least one
company’s
selling,
marketing &
promotional
expenses as a
% of Net sales.
Does not submit,
or incorrectly
assesses both
companies’
selling,
marketing &
promotional
expenses as a %
of Net sales.
Meets HP
criteria, plus
includes
additional
insights and
analyses
demonstrating
additional
research and
knowledge.
Excellent
identification
and
assessment
of both
companies’
accounts
receivable
turnover; has
no critical
omissions.
Satisfactorily
identified and
assessed
both
companies’
accounts
receivable
turnover;
contains
minor
omissions.
Partially
identifies and
assesses at
least one
company’s
accounts
receivable
turnover.
Does not
submit, or
incorrectly
identifies and
assesses both
companies’
accounts
receivable
turnover.
Meets HP
criteria, plus
includes
additional
insights and
analyses
demonstrating
additional
research and
knowledge.
Excellent
identification
and
assessment of
both
companies’ net
cash provided
by operating
activities as a
% of net sales
(ratio); has no
critical
omissions.
Satisfactorily
identifies and
assesses both
companies’ net
cash provided
by operating
activities as a %
of net sales
(ratio); contains
minor
omissions.
Partially
identifies and
assesses at
least one
company’s net
cash provided
by operating
activities as a
% of net sales
(ratio)
Does not submit,
or incorrectly
identifies and
assesses both
companies’ net
cash provided by
operating
activities as a %
of net sales (ratio)
Weight: 20%
2. Assess Each
Company’s
Selling Marketing
and Promotional
Expenses as a %
of Net Sales
Weight: 20%
3. Identify and
Assess each
Company’s
Accounts
Receivable
Turnover
Weight: 20%
4. Identify and
Assess each
Company’s Net
Cash Provided
by Operating
Activities as a %
of Net Sales
(Ratio)
Weight: 20%
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This
document is subject to change based on the needs of the class.
JWI 530 – Assignment 1B (1246)
Page 4 of 5
JWI 530: Financial Management I
Assignment 1B
CRITERIA
Honors
High Pass
Pass
Low Pass
Unsatisfactory
5. Demonstrate
Professional
Communication
and Executive
Presence
Meets all HP
criteria, plus
infuses the
delivery with a
style and
energy that
exemplifies
executive
presence;
demonstrates
exceptionally
strong and
engaging
interaction with
support
materials
without
allowing them
to distract from
the
presentation.
Delivery and
communication are
excellent;
written
materials,
timing, and
content are
well organized
and clear;
makes
excellent
choices of
where to focus
time and
energy to
cover the
most critical
elements.
Delivery and
communication are good;
makes eye
contact; voice
is dynamic;
presenter
uses
appropriate
verbal cues
and wears
professional
attire; PPT
deck, written
work, and
presentation
material meet
all submission
requirements
for content
and length.
Delivery and
communication meet
minimum
requirements
but lack
executive
presence;
PPT deck and
written work
meet basic
submission
requirements;
presentation
is on-topic,
but poorly
organized
and/or makes
minimal
connections
to key topics.
Does not
submit, or
submission is
poorly written;
PPT deck is
missing or is not
integrated into
presentation;
delivery is
unfocused or
off-topic.
Weight: 20%
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This
document is subject to change based on the needs of the class.
JWI 530 – Assignment 1B (1246)
Page 5 of 5