Analyze the financial statements and disclosure notes of a publicly traded company.
Obtain the most recent 10K from a public corporation that is interesting to you and answer the questions below. You should provide sufficient detail to answer each of the questions below as your grade will be determined by the quality of your responses. For answers requiring computations, you should explain your calculations so your professor can award partial credit if warranted. You will submit a professionally formatted paper with the answers to the questions below included. Your cover page must include your name, the class name, your professor’s name, the company you researched, and the date. Your paper will include an introduction discussing why you selected the company that you did, the body of the report will include the answers to the questions below in sequential order, and the conclusion will discuss what you learned from this assignment that you can apply to your personal and/or professional life. You must include the link to the most recent 10K that you used to answer these questions on your References page so your professor can grade your assignment.
Each numbered question below is worth 5 points.
What is the fiscal year for which this report was filed? You need to include the month and the year. Does this company’s fiscal year-end coincide with a calendar year-end?
Which agency requires the filing of this report? You need to also discuss the role of this agency.
What products and/or services does this company sell? Please be detailed.
What major industry does this company operate in? Please also state some competitors.
What are two risks identified by management? Please describe these risks.
Who are the firm’s independent auditors? What is the role of these auditors?
What opinion does the independent auditors express regarding the financial statements? Please state in your own words what this opinion would mean to an investor.
Provide two examples of where historical cost is used within the financial statements. State both the account name and the amount for each account you select.
What was the amount of revenue that the company reported for the most recent year? Did the revenue grow over the prior year? Discuss both the dollar and the percentage increase or decrease.
What was the amount of net income or net loss that the company reported for the most recent year? Did the net income increase or decrease versus the prior year? Discuss both the dollar and the percentage increase or decrease.
What was the amount of cash (and cash equivalents) that the company reported for the most recent year? Please state the amounts for each item you included in this number.
How much working capital does the company have for the most recent year? Please discuss the components of working capital. Be sure to show your calculations for full credit.
What is the amount of the total assets that the company reported for the most recent year? Please list the assets you included.
What is the amount of the total liabilities that the company reported for the most recent year? Please list the liabilities you included.
What was the free cash flow for the most recent year? Show the formula you used and your calculations for full credit. Please explain the importance of free cash flow.
Provide an example of an account that requires present value calculations. State both the account name and the amount for the account you select.
What is the interest rate on the company’s long-term debt? You may need to calculate a weighted average to derive this answer.
What inventory method does the company employ? Please explain how this method works.
Calculate the inventory turnover for the most recent year. Please explain what inventory turnover tells an investor.
What depreciation method does the company employ? Please explain how this depreciation method works.
What is the useful lives for the various types of property, plant, and equipment owned by the company? Please list the asset type and the useful lives.
Does the company have any impaired assets? Please explain.
Calculate return on assets for the most recent year. Please explain what return on assets tells an investor.
Calculate asset turnover for the most recent year. Please explain what asset turnover tells an investor.
See sections below for further guidelines. Please be sure to submit your completed Financial Statement Analysis Report by the end of Week 7 via the Submit button for this assignment under Modules.
Guidelines
Use 12-point font, double-spacing, and include a cover page, table of contents, introduction, body of the report, conclusion, and works cited.
Even though this is not a scientific-type writing assignment, references are still very important. At least three references are required. These should be listed on a final page titled References.
APA formatting is to be followed for your submission.
Appropriate citations are required.
All DeVry University policies are in effect, including the plagiarism policy.
Any questions about this paper may be discussed in the Q and A Forum.
This project is worth 160 total points and will be graded on quality of your content, use of citations, grammar, and sentence structure.
Best Practices
The following are the best practices in preparing this paper.
Cover Page: Include your name, the class name, your professor’s name, the company you researched, and the date.
Table of Contents: List the main ideas along with the section and pages on which they are located. The illustrations should be included separately.
Introduction: Use a header on your paper.
The purpose of an introduction or opening is
to introduce the subject and why the subject is important;
to preview the main ideas and the order in which they will be covered; and
to establish the tone of the document.
Include in the introduction the reasons why you selected the company that you did. Also, include an overview of what you are going to cover in your paper and the importance of the material. (This should include or introduce the questions you are asked to answer on each assignment.)
Body of Your Report: Use a header titled with the name of your project (example: An Analysis of the Financial Statements of Nike). State the main ideas, state major points in each idea, and provide evidence. Break out each main idea you will use in the body of your paper. Show some type of division, as in separate sections that are labeled, separate group of paragraphs, or headers. Include the information you found during your research and investigation.
Conclusion: Discuss what you learned from this assignment that you can apply to your personal and/or professional life.
References: Use APA format for in-text citations and the References page.
Here are additional hints on preparing the best possible document.
Apply a three-step process of writing: Plan, write, and complete.
Prepare an outline of your paper before you go forward.
Complete a first draft, and then go back to edit, evaluate, and make any changes required.
Use visual communication to further clarify and support the written part of your report. You may use example graphs, diagrams, photographs, flowcharts, maps, drawings, animation, video clips, pictograms, and tables.
