Analysis of Financial Statements 6

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Analysis of Financial Statements 6

By | April 2007
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Analysis of Financial Statements

Panorama, Inc. Simulation

FIN 540
Lydia Sneed

February 18, 2006

Team C

Josefina Martinez

Sarah Leija

Patricia Rayborn

Christopher Truby

The analysis of financial statements simulation presents us with the business Panorama Inc. who is seeking to form an alliance with a television manufacturing and marketing firm. Since the company's start in 1979, Panorama has grown into the second largest producer of computers and peripherals. They have always used their product innovation to set them apart from their competitors and hope that with a smart alliance partner, their position in the global business world will change to make them a leader. Panorama's newest innovation is a set-top box that changes a regular television into an Internet interface and also gives the set digital broadcasting capabilities. The product is being called the PanBox. The market estimates that within the next three years over 35 million homes will be using digital broadcasting, so this new product has great potential. By forming a joint venture with either Lambda or Coral, the PanBox could be the next "it" item and bring great wealth and recognition to its creators. This is why such careful consideration is needed to select the best candidate. Panorama's management must review and weigh which financial ratios are in alignment with their own. Beyond financial ratios, other important non-financial measures must also be taken in consideration before the selection is made. Once both the financial ratios and the non-financial measure have been evaluated, the choice can finally be made. The simulation allowed us to review the financial statements of two potential companies, Lambda TV and Coral. Although all the financial ratios are important, the manager of Panorama must decide which ratios weigh a greater importance when it comes to selecting the best suited business partner. In order to evaluate the financial health of the two...

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