Assignment
1. The balance sheet is one of four major financial statements used to communicate the required accounting information about a business. In an annual report, the balance sheet may also be called a statement of financial position. What is the purpose of the balance sheet (4) What types of intangible assets are owned by your companies'?
c) Long Term Debt: Companies' primary use of long-term debt instruments which are notes payable and bonds payable. At the current and prior year-end for what are the two largest amounts of long term debt? Interest rate, term, and carrying value?
3. Balance Sheet Financial Analysis comparison of two companies for current and prior year
a) The level and percentage changes in cash, inventory, working capital, fixed assets, and debt
b) The trend in the current, acid test, debt-to-assets, and debtto-equity ratios
c) The relationship between cash and investments, cash and current liabilities, and investments and debt
d) The relationship between changes in receivables or inventory and changes in revenues
e) The relationship between increases in fixed assets and a company's desire to expand operations
f) The potential implications of having large cash balances, in terms of acquiring other companies or being an acquisition target
G. MARKET DATA ANALYSIS Summary
1. Prepare a form similar to the one below for the current and prior year of your primary company, current year for your competitor.
2. Some companies will have different names for these accounts; others will not have any balances in the accounts.
3. You may rename the accounts, if desired. Put N/A if the account name is not applicable for your company. Use Word or Excel.
4. Where it states to use the Current Year numbers, you are to use the numbers from the annual report you have been working with since the beginning of the semester.
a) You may have other accounts that are not listed below. Expand the table to include the "other" accounts
b) Note: not all of the information may be available, this is OK. In addition, it is OK to add additional accounts critical to the analysis of the two corporations. Some of the companies on the selection list are emerging technologies. I highly recommend this be complete at the very beginning of the project. This will be a very useful research tool for analyzing the trend analysis in the accounts, and the ratio analysis.
c) If the information is not available, try to understand why, and discuss in your final analysis.
d) This is a summary of the annual report, 10k. You need to extract the information from the financial statements; Income statement, Balance Sheet, Statement of Stockholder Equity and cash flow statement.