Answer the following questions. Use a combination of Word and Excel
1) What is the nature of your company's business? How do they make money?
2) How often do public companies prepare financial statements for external reporting purposes?
3) Who is responsible for the financial statements? Discuss four potential users of the statements and what would they be interested in?
4) Who are your company's external auditors? What opinions does the auditor offer in their letter?
5) Use a spreadsheet in a common size income statement format for the most recent year and the year before. include % of sales for each item next to the amounts that are given on the 10k income statement.
6)Use a spreadsheet in a common size Balance sheet format for the most recent year and the year before. include % of total assets for each item next to the amounts that are given on the 10k balance sheet statement.
7) Show on your spreadsheet the accounting equation for the two years.
8) What are you company's major assets? Why do you think they have a lot of this type of asset?
9) What are intangible assets? Does your company have any intangible assets? If yes what are they
10) What % of financing comes from non-owners and owners? Did the percentages change much between the two years?
11) Did sales (revenue) grow in your company from year to year? By what percentage did sales increase or decrease?
12) What are some your companies major expenses? List five and the percentage of sales they each represent. Did these expenses go up or down during the two years observed?
13) Was your company profitable in the two years that are being reviewed? What is their net income profit percentage for each year?
14) Did your company pay dividends during the two years observed? If yes what % of their net income did they pay in dividends in each year? Dividends/Net income
15) Review the management's discussion of their business. What does the management say are their major opportunities and biggest threats?
16) Several notes to the financial statements say that estimates where used. List the notes on your company's statements that refer to estimates. (ie Note 1 concerning accounts receivable and the use of estimates)
17) Calculate for both years the following ratios: Return on assets, Return on equity, Current ratio, Inventory turnover.