Assignment
Submit a well-formatted electronic version of your responses to the questions below.
1) After reading the entire annual report on form 10K-define your company and its business. Clearly define the background of the company, its lines of business, overseas operations and any other information a potential investor may be interested in. Approach this as if you were writing a book report. You want your reader to have a good understanding of the background of your company and you want your reader to WANT to know more. Prepare the report to entice potential investors. Use the ENTIRE "front" of the report to prepare your answer - all pages up to the financial statements.
2) Using the table of contents, or headers if you do not have a table of contents, provide a brief explanation of the primary sections of this company's 10K. There are four sections and 15 item numbers. Describe each section and each item number in 2-3 sentences.
3) Describe the business environment in which your company operates (for example, the industry it is in, its competitors, the political climate in which it operates, litigation, risks and contingent liabilities and any other issues addressed by the 10K). Use the 10K identification of risk factors, environmental concerns, litigation and other applicable information.
4) What inventory valuation method does the company use? What additional footnote information is disclosed?
5) What depreciation method does the company use? What additional long-lived asset footnote information is disclosed?
6) What is the dollar value of the company's total long-term debt (sum the current portion of long- term debt with long- term debt - confirm with footnote disclosure). What is the company's debt/equity ratio? Use total debt as defined above divided by total stockholders equity. Compare the company ratio to the industry ratio and prepare brief analysis
7) What is the dollar value of the company's current assets? What is the dollar value of its current liabilities? Does it have enough to pay off its current liabilities?
8) Describe all the stock included in the Stockholders Equity section of the Balance Sheet. Include types of stock, par value and the number of shares authorized, issued and outstanding. Based on the information in the 10K, when did the company pay its last dividend (Item 5)? Based on the 10K, what was the per share dollar amount of the most recent dividend (Item 5)?
9) What is the company's basic (simple) earnings per share (EPS) for common stock?
For questions 10, 11 and 12 prepare the following table:
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Account names
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Current Year $
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Prior Year $
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$ Change
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% Change
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|
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A
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B
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C (A-B)
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D (C/B)
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10) What is the dollar and percent increase or decrease in revenue/sales? What factors led to the changes? Use MD&A to discuss this.
11) What is the dollar and percent increase or decrease in cost of goods sold and all other expenses separately listed on your income statement (disregard any tax accounts)? Discuss each expense separately. What factors led to the changes? Use MD&A to discuss this.
12) What is the dollar and percent increase or decrease in cash? What factors led to the change? Discuss the change in cash from operations, investing and financing. Use the statement of cash flows in addition to the MD&A.
13) What is the market price of its stock on the day you are preparing this? Use nyse.com and nasdaq.com. Discuss trends (1 year) in stock price
14) Would you invest in this company's stock? Why?
15) Identify and read the auditors reports. What comfort do the reports give you?
Format your assignment according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.