You are a junior associate at B300 Financial Advisors. A new client, Manuel Rodriguez, has just inherited
Question:
You are a junior associate at B300 Financial Advisors. A new client, Manuel Rodriguez, has just inherited $500,000 which he has decided to invest in a single company. Your team leader, Senior Investment Broker Alison Page, has asked you to review the annual report/10-K of the corporation that you recommended in your letter to Mr. Rodriguez. Ms. Page would like you to provide her with a briefing memo that includes a description of the company (you may paraphrase or use quotes from the 10-K with proper attribution), as well as the company's total assets, liabilities and equity for the last two years (from the Balance Sheet in the 10-K). Provide a brief recommendation on the appropriateness of the company for Mr. Rodriguez's conservative investment using B300s block format structure for memos outlined on EW, p. 199.
All of the research you need for this assignment is contained in two pages of your company's 10-K, which can be located on the SEC.gov website. Here is the path to the 10-K and the Financial Statements:
- SEC.gov
- FILINGS
- Company Filing Search
- Under "Company and Person Lookup" insert your company's name
- Under "Filing Type" insert "10-K"
- Check date for most recent year a 10-K was filed and select the "Interactive Data" option
- The yellow box on the left provides access to the sections of the report
- Select "10-K" to locate a brief description of the business under Item 1
- Select "Financial Statements" to get to the Balance Sheet
Your company is likely to list balance sheets in several forms. Choose one - and clearly identify which one you used (i.e. consolidated balance sheet) to obtain the total assets, liabilities and equity for your memo. Either form will provide the two years of data requested. Be sure to describe the dollar amounts accurately (most financial statement data is presented thousands).
Use headings to present your information in a clear, easy-to-follow manner. Remember to recommend - or not recommend - the company in both your introduction and conclusion.
Financial Analysis with Microsoft Excel
ISBN: 978-1285432274
7th edition
Authors: Timothy R. Mayes, Todd M. Shank