For ACTG 201
The paper you submit should be 5-10 pp. of analysis and summary – as appropriate to answer the questions below. Appendices (beyond the 5-10 pp.) of calculations, articles, tables, charts, and graphs, as required to support your analysis and conclusions, should be included. A bibliography also needs to be included. Make sure to Answer the Question: Would you work for or invest in the company that you analyzed? Your analysis will be used to support your answer to that question! A recorded presentation will be made. You are also responsible for reviewing your classmate’s presentations and commenting. PLEASE, make sure to proofread prior to submission! You MUST use www.grammarly.com as part of your final paper review or you will lose a letter grade.
Please include the following as part of your analysis:
1. Select one publicly-traded company (U.S. preferred) to focus on for your analysis. Online reports through EDGAR will be used (not the hardcopy reports you received, although you can choose one of the companies that you did get a report for). You are able to access ALL publicly traded US company’s 10-k’s at: https://www.sec.gov/edgar.shtml
2. Read the Annual Report, Cover to Cover, and report overall impressions. Comment on why you selected this company/industry. Also, look at the Report by the CEO/President, Auditor’s Opinion Letter, the graphics, and the formatting. How is the information presented? Does it inspire trust, accuracy, reliability, and excitement?
3. Report anything that surprised you as you were reading through, including in the notes.
4. Note if there are items that you feel are missing, or areas that you would like to see more information.
5. Give background on the company and include a synopsis for the industry as a whole. Use information from supporting articles and/or internet searches that you may have found.
6. Use Edgar, http://www.sec.gov/edgar.shtml, to take a look at at least 3 other companies in the industry as well as get their latest financials from YOUR specific company.
7. Perform Individual Ratio and Trend analysis. Calculate a minimum of the following financial ratios for 3 years: Current Ratio; Inventory Turnover; Receivables Turnover; Debt to Total Assets; Profit Margin; Return on Assets; Return on Common Stockholders Equity. Calculate a 3-year trend analysis for at least 5 items over a minimum 3-year period (s.a. Profits, Assets, Sales, Gross Margins, and/or any other specific Income Statement or Balance Sheet items you would like to analyze). Present Income Statement and Balance Sheet for at least 2 years using Common Size statements. Use the Almanac of Business and Industrial Financial Ratios (cited below) to obtain industry standards. Compare and report on the comparison of these standards and/or other companies to your company’s results. Comment on your analysis. Optional extra credit assignment, perform a SWOT analysis. Insights can be found at: https://www.mindtools.com/pages/article/newTMC_05.htm
8. Answer the question: “Would I consider working for or investing in this company and/or industry?” Specifically, address why or why not. Make sure to include a Bibliography of sources.
