Assignment: Research Methods in Informatics
Annual Report Analysis
Assignment Overview:
Utilizing information learned from the following books we will analyze the corporate annual report from one company identified by Warren Buffett as having a durable competitive advantage.
"Accounting and Financial Fundamentals for NonFinancial Executives," by Robert Rachlin and Allen Sweeny
"Warren Buffett and the Interpretation of Financial Statements," by Mary Buffett and David Clark
Identified company:
For this Annual Report Analysis we will be analyzing - The Coca-Cola Company Submitting the Completed Assignment:
As with previous assignments a submit location link will be provided in the Assignments Folder. In the Analysis, please provide citations for all annual report answers and use hyperlinks to the pages cited.
Annual Report Analysis:
Locate the identified company's annual report (Hint: Look for current 10-K form). Use the questions asked below as your outline. If you are asked to summarize on a question do not cut and paste summaries from the annual report. Rather you will need to summarize in your own words.
For each answer, provide a citation. If you are using a written annual report, provide the full citation the first time you quote the report and then provide the page number after that point. If you are using a web based report, provide the full citation and web site the first time you quote the report and then the web address containing the relevant information for each answer after that point.
1. Identify the company and the location of its headquarters.
2. As identified in the annual report, what are the primary activities of the company?
3. What were the company's revenues for each of the last five years? 10 pts.
4. What was the company's income or loss per share for each of the last five years?
5. For each of the last two years, identify the company's amount of assets considered current.
6. Determine what percentage of the company's debt in the most recent fiscal year would be considered current debt. (You will need to calculate this using the available information provided in the annual report).
7. What percentage of the company's gross profit went to Selling, General & Administrative (SGA) Expenses?
8. As of the close of the last fiscal year, identify the corporation's number of shares of common stock that remain outstanding?
9. What was the amount of total shareholder's equity at the close of the last fiscal year?
10. Did the company have a net increase or decrease in cash and cash equivalents for the most recent fiscal year? (Did it have a positive cash flow?) What was the amount of the net change?
11. Did the company have any unusual one-time activities during the year that affected its income statement? If so, what were those activities? (Summarize)
12. What method of depreciation does the company use?