Instructions: You will be using Monsanto Company. You can find the Company's financial statements along with the Notes (to the Financial Statements) on the company's Form 10-K that it files with the Securities and Exchange Commission (SEC). At the end of this document, there is information and a link to a tutorial video on the 10-K and how to fmd your comnanv's 10-K.
A. Research and then describe your company's primary business activities.
Include:
1. An historical summary,
2. A list of competitors,
3. The company's position within the industry,
4. Recent developments within the company/industry,
5. Future direction, and
6. Other items of significance to your corporation.
B. Include information from a variety of resources. For example:
1. Consult the Form 10-K filed with the SEC. Please review the information at the end of this document for information about the Form 10-K.
2. Review the Annual Report and especially the Letter to Shareholders
3. Explore the corporate website and report some of the interesting features of the site.
4. Select at least two significant news items from recent business periodicals
Submit a written report that is 3-4 pages long. The report should be well written with introductory and concluding paragraphs. References must be appropriately cited.
Be sure to address all of the points in Section A above, using all of the resources listed in Section B.
Using the company's income statement and balance sheet, prepare common sized income statement and balance sheet for the years 2014 and 2013. For the common size income statement, use sales of each year as the base for that year. For the common size balance sheet, use total assets as the base.
See pages 498499 for an example of the format to use. Comment on the condition of Monsanto Company, drawing on the common size statements. Your comments should be at least 150 words.
The purpose of the second part of the comprehensive project is to compute financial statement ratios. Show all information in an easy-to-read tabular form.
A. Compute the past three years. Display your answers in a tabular format. Indicate on your worksheet whether each ratio is: stronger / weaker ; quicker /slower ; more / less liquid ; or more / less risk. Below your table, comment on the financial condition of the company with respect to short term solvency and long term solvency. Your comments should be at least 300 words. On a separate page, show how your answers were calculated.
B. Compute the past three years. Display your answers in a tabular format. Indicate on your worksheet whether each ratio is: stronger / weaker; quicker /slower ; more / less liquid ; or more / less risk. Below your table, comment on the financial condition of the company with respect to performance. Your comments should be at least 300 words. On a separate page, show how your answers were calculated.
The purpose of the fourth part of the comprehensive project is to compare Monsanto Company ratio results to ratios of one of its top competitors. Show all information in an easy-to-read tabular form.
A. Obtain the four-digit primary SIC (Standard Industrial Classification) Code and industry title for your company. Record the primary SIC code and industry title at the top of your Ratio Analysis Table/Spreadsheet.
B. For a competitor company with the same SIC, calculate the following ratios for the two most recent years.
1. Current ratio
2. Debt to equity ratio
3. Times interest earned
4. Asset Turnover
5. Return on Sales
6. Gross Margin ratio
7. Return on Assets
8. Return on Equity
9. Price Earnings Ratio
10. Dividend yield
C. Submit a report. Write a 2-4 page report comparing Monsanto's ratios to its competitor's ratios for the two most recent ycars. Discuss whether Monsanto's profitability, liquidity, and solvency are better than, or worse than, its competitor.
A. Prepare a well-written titled "Would You Advise a Friend to Invest in This Company?" based upon your research and analysis of this company's financial information. Identify 3-5 significant points that justify your conclusion. Support your points with a comprehensive explanation incorporating sound reasoning.
B. Submit a report that is 3-4 pages long. The report should be well written with introductory and concluding paragraphs. References must be appropriately cited.