ACCT 607 Assignment Help 3 | Case Study 3 | Kogod School Of Business American University
- kogod-school-of-business-american-university / ACCT 607
- 29 Apr 2019
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ACCT 607 Assignment Help 3 | Case Study 3 | Kogod School Of Business American University
ACCT 607 Applied Case Assignment #3
(Chapters 5 and 13)
Answer the following questions based
on McCormick & Company, Incorporated’s (NYSE: MKC; Sparks, MD; hereafter,
“McCormick” or “the Company”) 2014 Annual Report (containing the Company’s
10-K) and the press release and related 10-Q filing for the second quarter
ended May 31, 2015. These documents are available online at: Annual report:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjY4MzE3fENoaWxkSUQ9LTF8VHlwZT0z&t=1
Press release:
http://phx.corporate-ir.net/phoenix.zhtml?c=65454&p=irol-newsArticle&ID=2063942,
10-Q filing: http://services.corporateir.net/SEC/Document.Service?id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFpDN
XdhSEEvWVdOMGFXOXVQVkJFUmlacGNHRm5aVDB4TURNMk5EQXhOaVp6ZFdKemFXUTlOVGM9JnR5cGU9MiZmbj1N
Y0Nvcm1pY2tDb21wYW55SW5jLnBkZg==
Part I: Strategic Ratio Analysis
1. (a) Compute ROE and a
three-factor ROE decomposition for the Company for the years ended 2014 and
2013. For simplicity, use year-end balances in your ratio computations. (4 pts)
(b) Has the Company’s ROE increased
or decreased in 2014? Which component(s) of the ROE decomposition support or
contribute to that directional change in the Company’s ROE?
(c) Select ONE of the three
components of the ROE decomposition and explain what most likely lead to the
observed change in that component. (HINT: Explanations for two of the three
components are more readily identifiable from the financial statements. You
only need to identify ONE of those.)
2. Are the Company’s quarterly
financial statements audited by independent CPAs? How do you know?
3. What periods are being reported
on the Company’s interim income statements? Refer to specific months and years.
4. (a) What level of growth does the
Company expect for its Net Sales for the fiscal year 2015? (HINT: Refer to the
details of press release, and think carefully about how the Company is
describing its sales!)
(b) Would the management guidance
for fiscal year 2015’s net sales be likely interpreted by investors as an
improvement or a deterioration in the Company’s performance, relative to 2014?
USA 
India
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