MBA 500 Module Four Consulting Report Guidelines and Rubric
Overview
Analyzing the financial performance of a company is crucial for any business at any given point of time, but especially when the company is heading in a new direction.
You are aware that your company has made the strategic decision to move to a triple bottom line (TBL)-focused business model. You have already collaborated with various departments within your organization to understand their perspectives.
Now you will review the current financial performance of your organization and evaluate whether the operational plan aligns with key performance indicators of the finance department.
Prompt
Using the financial records of the health and beauty company that you work for, as well as the financial records of the company you chose in Module One, create a consulting report outlining the following criteria:
Explain key financial performance indicators that various stakeholders would be most interested in. Support your rationale and include the following stakeholders in your response:
Employees
Shareholders
Community groups
Explain additional key financial line items related to triple bottom line that are required to measure cost. Support your rationale.
Supporting Material
Financial records of the health and beauty company you work at
Consolidated balance sheet
Consolidated cash flow statement
Consolidated income statement
Financial records of the company you chose in Module One
Balance sheet of your chosen company
Cash flow statement of your chosen company
Income statement of your chosen company
List of global companies provided in Module One
List of Companies
######
Consolidated Balance Sheet
$ thousand
$ thousand
$ thousand
31-Dec-18
31-Dec-17
31-Dec-16
Assets
Current assets
Cash and cash equivalents
Inventories
Accounts and other receivables
Prepaid expenses
6,121
8,164
14,178
1397
4,272
4,301
10,482
472
3,317
3,962
9,219
488
29,860
19,527
16,986
17,062
7,962
8,000
3,427
11,088
7,152
8,000
1072
10,270
6,520
8,000
1016
36,451
27,312
25,806
66,311
46,839
42,792
Accounts and other payables
7,768
7,457
6,426
Short-term debt
3,691
2,613
7,378
Deferred revenue
898
1,445
1,088
Non-current assets
Property, buildings and equipment
Intangible assets
Goodwill (See notation below)
Long-term Financial assets
Total assets
Questions to consider
– Is the building LEED Certified (planet)?
– Is the equipment new and energy efficient (planet)?
– Is the plant minimizing waste (planet)?
– Is the property focused on preserving natural resources (planet)?
– Is the equipment effectively producing more and safer products (people, profit)?
Questions to consider
– Is the company using its financial assets to support communities (people)?
– Is the company increasing its financial assets by decreasing waste (planet, profit)?
– Is the company focused on investing in funds of TBL companies (planet, profit)?
– Is the companys stock portfolio diversified (people, planet, profit)?
Liabilities
Current liabilities
Other current liabilities
620
624
525
12,977
12,139
15,417
5,499
5,784
8,158
Question to consider
– Is the company managing liabilities to limit short -term interest
payments (profit)?
Non-current liabilities
Long-term debt
Other non-current liabilities
Total liabilities
339
346
1200
5,838
6,130
9,358
18,815
18,269
24,775
Equity
Shareholders equity
Common Stock
134
120
110
Additional Paid-in-Capital
3,574
2,227
2,107
Retained earnings
43,788
26,223
15,800
Total equity
47,496
28,570
18,017
Total liabilities and equity
66,311
46,839
42,792
Question to consider
– Is the company reinvesting its retained profit into TBL initiatives
Notation: Goodwill is defined as “an intangible asset that is created when one company acquires another company for a price greater than its net asset value.”
It has nothing to do with charitable or philanthropic efforts.
######
Consolidated Balance Sheet
$ thousand
$ thousand
$ thousand
31-Dec-18
31-Dec-17
31-Dec-16
Assets
Current assets
Cash and cash equivalents
Inventories
Accounts and other receivables
Prepaid expenses
6,121
8,164
14,178
1397
4,272
4,301
10,482
472
3,317
3,962
9,219
488
29,860
19,527
16,986
17,062
7,962
8,000
3,427
11,088
7,152
8,000
1072
10,270
6,520
8,000
1016
36,451
27,312
25,806
66,311
46,839
42,792
Accounts and other payables
7,768
7,457
6,426
Short-term debt
3,691
2,613
7,378
Deferred revenue
898
1,445
1,088
Non-current assets
Property, buildings and equipment
Intangible assets
Goodwill (See notation below)
Long-term Financial assets
Total assets
Questions to consider
– Is the building LEED Certified (planet)?
– Is the equipment new and energy efficient (planet)?
– Is the plant minimizing waste (planet)?
– Is the property focused on preserving natural resources (planet)?
– Is the equipment effectively producing more and safer products (people, profit)?
Questions to consider
– Is the company using its financial assets to support communities (people)?
– Is the company increasing its financial assets by decreasing waste (planet, profit)?
– Is the company focused on investing in funds of TBL companies (planet, profit)?
– Is the companys stock portfolio diversified (people, planet, profit)?
Liabilities
Current liabilities
Other current liabilities
620
624
525
12,977
12,139
15,417
5,499
5,784
8,158
Question to consider
– Is the company managing liabilities to limit short -term interest
payments (profit)?
Non-current liabilities
Long-term debt
Other non-current liabilities
Total liabilities
339
346
1200
5,838
6,130
9,358
18,815
18,269
24,775
Equity
Shareholders equity
Common Stock
134
120
110
Additional Paid-in-Capital
3,574
2,227
2,107
Retained earnings
43,788
26,223
15,800
Total equity
47,496
28,570
18,017
Total liabilities and equity
66,311
46,839
42,792
Question to consider
– Is the company reinvesting its retained profit into TBL initiatives
Notation: Goodwill is defined as “an intangible asset that is created when one company acquires another company for a price greater than its net asset value.”
It has nothing to do with charitable or philanthropic efforts.
Consolidated Cash Flow Statement
for the year ended 31 December
$ thousand
2018
Cash Flow from Operating Activities:
Net Income
Adjustments to Reconcile Net Income to
Net Cash Flow from Operating Activities
Change in Accounts receivable
Change in Inventory
$ thousand
2016
18,565 $
11,423
10,784
Change in Prepaid expense
(3,696)
(3,863)
(925)
(1,263)
(339)
16
(2,750)
(1,335)
(2,250)
Depreciation and amortization
1,000
890
800
Change in Accounts Payable
311
1,031
(1,525)
Change in Short term debt
1,078
(4,765)
240
Change in Deferred revenue
(547)
357
432
(4)
99
33
11,919
7,449
4,429
(6,974)
(1,708)
(200)
(810)
(632)
–
Cost of new Other current assets
(2,355)
(56)
(25)
Net Cash Flow: Investing Activities
(10,139)
(2,396)
(225)
(285)
(2,374)
(1,150)
Change in Other noncurrent liabilities
(7)
(854)
(24)
Issuance of Common Stock
14
10
–
Change in Other current liabilities
Net Cash Flow from Operating Activities
$
$ thousand
2017
Cash Flow from Investing Activities:
Cost of new Property, buildings, and equipment
purchased
Cost of new Intangible assets
Cash Flow from Financing Activities:
Payments of Long-term debt
Change in Additional paid-in-capital
1,347
120
–
Payment of Dividends
(1,000)
(1,000)
(1,000)
Net Cash Flow: Financing Activities
69
(4,098)
(2,174)
Total Cash Flow increase/(decrease)
1,849
955
2,030
4,272
Cash Balance, Beginning
Cash Balance, Ending December 31
$
6,121
$
3,317
1,287
4,272
3,317
Questions to consider:
– Is the company experiencing positive cash flows from operating activities (profit)?
– How is the company generating cash flow from sustainable/environmentally friendly
operations (planet/profit)?
Question to consider:
– How is the company investing in other companies and their efforts to support TBL?
Question to consider:
– Is the company experiencing positive cash flows from financing activities (profit)?
Consolidated Income Statement
for the year ended 31 December
$ thousand
2018
Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses:
Selling expenses
Salary expense
Advertising expense
Administration expense
Depreciation and amortization expense
Salary expense
Other Operating Expenses
Total Operating Expenses
Operating Income
Other Revenue and (Expenses)
Charitable donations
Total Other Revenues and Expenses
Income Before Income Tax
Income Tax Expense
Net Income
$
174,090
93,000
81,090
35,000
8,000
1,000
10,800
2,200
57,000
24,090
$
500
500
23,590
5,025
18,565
tatement
cember
$ thousand
2017
$
$
$ thousand
2016
150,000 $
88,000
62,000
130,000
75,000
55,000
29,000
7,500
24,500
6,800
890
8,700
1,900
47,990
14,010
750
7,500
1,400
40,950
14,050
450
450
13,560
2,137
11,423 $
400
400
13,650
2,867
10,784
Questions to consider – Are we seeing year-over-year growth in revenues?
– Is this growth attributable to our CSR and TBL efforts?
Question to consider – Are we hiring to support TTL efforts and objectives?
Question to consider – Are we hiring to support TTL efforts and objectives?
Question to consider Our TBL strategies include giving back to the low-income
neighborhoods we are targeting. Does our charitable giving reflect
that increased support to those neighborhoods?
