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Financial Accounting Project

1. Pick a publicly traded company.

2. Obtain the most recent annual report for your company. The easiest way to obtain the annual report is to visit the companys web site and download the annual report. (Do NOT print the entire report!) You may also visit libraries, or call/email the company with a request for the most recent annual report from the investor relations department of a company.

3. Some financial information will be available from Yahoo Finance web site. You will need the complete financial report to fully complete this project. Do not rely completely upon Yahoo finance for the information. It will be insufficient.

4. Complete the attached checklist of items. (21 points)

5. Perform an extensive ratio analysis on the liquidity, solvency, and profitability of the two most recent years based on chapter 13 in your textbook. (25 points)

6. Prepare a short paper (approximately one-two paragraphs) summarizing your key findings. Reference your checklist items and ratio analysis. (4 points)

7. Submit for grading the following package of materials:

a. Your short paper

b. Checklist of key items

c. Your ratio analysis for each year

d. A link to the annual report for the company, with printouts of the pages that you used in your project.

Financial Accounting Project

Checklist of Key Items

(21 possible points)

1. Name and industry of the selected company (1 pt)

2. Major products/services of the company (1 pt)

3. Identify the companys net income and over what period it was measured. (1 pt)

4. Identify the Companys total sales and over what period it was measured (1 pt)

5. List four competitors in this industry. (1pt)

6. Select one competitor. What is the competitors name, total sales and net income. (1 pt)

7. Key figures for the most recent two years: (6 pts)

(a) Total Assets, (b) Total Revenue, (c) Net Income, (d) Cash Flow from Operations

8. Current stock price (list the source of the info and the date) (1 pt)

9. What method was used to determine cash flow from operations? (direct or indirect) (1 pt)

10. What method of depreciation was used? (include page number) (1 pt)

11. What method of inventory was used? (include page number) (1 pt)

12. Name of the auditor and type of audit report for the company (include page number) (1 pt)

13. Description of an interesting footnote for the company (include page number) (2 pt)

14. Description of something you learned from reviewing Managements Discussion and Analysis (include page number) (2 pt)

Financial Accounting Project

Ratio Analysis

(25 possible points)

1. Prepare a horizontal analysis of the income statement, using the same line items as those listed on the companys income statement. (Hint: If you use a spreadsheet program, such as Excel, it can help you with both this item and item 2.)

2. Prepare a common size income statement (vertical analysis) of the companys income statement, again using the same line items as those listed on the companys income statement.

3. Perform an extensive ratio analysis on the liquidity of the company for the most recent two years based on chapter 13 of your textbook.

4. Perform an extensive ratio analysis on the solvency of the company for the most recent two years based on chapter 13 of your textbook.

5. Perform an extensive ratio analysis on the profitability of the company for the most recent two years based on chapter 13 of your textbook.

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