CASE STUDY #2 REQUIREMENTS

Written Assignment (Report 15 marks)

1. Assume the position of Jenny Chen and prepare a report (Format given) that analyses
the financial condition of HPT and makes recommendations for the future. Specifically, the
report should cover qualitative & quantitative analysis of liquidity, asset management,
long-term debt ability and profitability. A final recommendation section should discuss
what Jane Wallace should do to address the problems at HPT and what might be done in
the longer term relating to the management of the company.

2. Prepare the following financial exhibits for 2001, 2002 and 2003:

• Ratio table with industry averages

• Vertical analysis of income statements and balance sheets
• Horizontal analysis (index numbers) of income statements and balance sheets
• Cash flow statements for 2002 and 2003

RUBRIC FOR THE CASE REPORT (Total 15 marks)

Objective/Criteria Performance Indicators

Need Meet Expectations Exceptional
Improvement
Business (0.6 points) (1.25 points) (2 points)
Communication The report's The report's business The report is written with
Tone, Style and business communication tone, style excellent business
Tact communication and tact are barely communication tone, style
tone, style and acceptable. There are errors and tact. There are no
tact are not which requires grammatical, spelling,
acceptable. improvements in some of sentence and tenses errors.
Improvements the following areas:
should be made grammar, spelling, sentence
in many of the and tenses. The tone and
following areas: style also need
grammar, improvement. you should
spelling, also avoid the use of first
sentence and and second person (You, I,
tenses. The tone Me,) to depersonalize the
and style also tone of your report.
need
improvement.
you should also
avoid the use of
first and second
person (You, I,
Me,) to
Objective/Criteria Performance Indicators
Need Meet Expectations Exceptional
Improvement
depersonalize
the tone of your
report.
Executive (0.3 points) (0.75 points) (1 points)
Summary The executive The executive summary is The executive summary is
summary is not acceptable. Written with excellently done. Written
acceptable. good communication that is with good communication
More than one clear and direct. However, that is clear and direct. All
of the following one of the following three of the following three
three elements elements of a good business elements are also present: 1.
of a good report executive summary Adequately summarized the
business report is/are missing: 1. issue. 2. Briefly identified
executive Adequately summarized the the options, 3. Summarized
summary is/are issue. 2. Briefly identified the report's main
missing: 1. the options, 3. Summarized recommendation
Adequately the report's main
summarized the recommendation
issue. 2. Briefly
identified the
options, 3.
Summarized the
report's main
recommendation
Introduction (0.3 points) (0.75 points) (1 points)
Purpose and Clear scope or and purpose Clear scope and purpose
scope are not
clear
Financial (1-2 points) (2-4 points) (5 points)
Analysis Both qualitative Parts of analysis missing on Both qualitative &
& quantitative liquidity, asset management, quantitative analysis have
analysis have long-term debt ability and been performed on liquidity,
not been profitability of HPT Inc. All asset management, long-
performed on issues have not been term debt ability and
liquidity, asset analysed. Results of the profitability of HPT Inc.
management, quantitative analysis are Clear identification of issues
long-term debt partially incorrect. Ratios based on analysis. Results of
ability and have not been appropriately the quantitative analysis are
profitability of analysed, and some trends correctly used. Ratios have
HPT Inc. have not been quoted as per been appropriately analysed,
Unclear appendix tables. and trends have been quoted
identification of as per appendix tables.
issues. The
Objective/Criteria Performance Indicators
Need Meet Expectations Exceptional
Improvement
analysis is not
balanced and
quite one sided.
Result of the
quantitative
analysis are not
correctly used.
Mis-quoted
figures, do not
relate to
appendix tables.
Financial exhibits (1-2 points) (3 points) (4 points)
(Appendix) Most Partially met requirements All requirements have been
requirements and / or figures calculated met as under:
have not been are incorrect.
met or most of Ratio table with industry
the figures averages
calculated are Vertical analysis of income
incorrect. statements and balance
sheets
Horizontal analysis (index
numbers) of income
statements and balance
sheets
Cash flow statements for
2002 and 2003
Recommendation (0.3 points) (0.75 points) (1 points)
No clear The recommendation is not Made clear valid
recommendation clear or well supported by recommendation that flows
is made the logic of the qualitative logically from the
regarding the and quantitative analysis qualitative and quantitative
options performed analysis performed
available.
Conclusion (0.3 points) (0.75 points) (1 points)
The response Meet expectation but can be Effectively summarize the
does not provide improved by clearly report's achievements and its
a conclusion summarizing the report's recommendations thereby
that summarizes achievement and its provide adequate closure for
the report's recommendation and the audience.
achievement thereby provide adequate
and its closure for the audience.
recommendation
Objective/Criteria Performance Indicators
Need Meet Expectations Exceptional
Improvement
to the business
audience.