Project 1.

Each member of the group should obtain the annual report of a different company. Select companies in different industries. Evaluate each company’s trend of cash flows for the most recent two years. You can use any other publicly available information—the companies’ other financial statements (income statement, balance sheet, statement of stockholders’ equity, and the related notes), and news stories from magazines and newspapers. Rank the companies’ cash flows from best to worst, and write a two-page report on your findings.

Project 2.

Select a company and obtain its annual report, including all the financial statements. Focus on the statement of cash flows and, in particular, the cash flows from operating activities. Specify whether the company uses the direct method or the indirect method to report operating cash flows. Next, use the other method to prepare the company’s cash flows from operating activities. Use the other financial statements (income statement, balance sheet, and statement of stockholders’ equity) as needed and the notes to the financial statements.