As a team, select an industry to analyze. Reuters provides lists of industries under Sectors and Industries at www.reuters.com . (Click on an industry and then select Company Rankings for a list of members of that industry.) Each team member should acquire the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (Library files, the SEC EDGAR service at www.sec.gov , or the company itself are good sources.)

Required:
On an individual basis, each team member should write a short report answering the following questions about the selected company. Discuss any patterns across the companies that you as a team observe. Then, as a team, write a short report comparing and contrasting your companies.
1. For the most recent year, what is (are) the major revenue account(s)? What percentage is each to total operating revenues? (Calculated as Revenue A ÷ Total revenues.)
2. For the most recent year, what is (are) the major expense account(s)? What percentage is each to total operating expenses? (Calculated as Expense A ÷ Total expenses.)
3. Ratio Analysis:
a. What does the total asset turnover ratio measure in general?
b. Compute the ratio for the last three years.
c. What do your results suggest about the company?
d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs or is similar to the industry ratio.
4. Describe the company’s revenue recognition policy, if reported. (Usually in the Significant Accounting Policies footnote.)
5. The ratio of Cash from Operating Activities divided by Net Income measures how liberal (that is, speeding up revenue recognition or delaying expense recognition) or conservative (that is, taking care not to record revenues too early or expenses too late) management is in choosing among various revenue and expense recognition policies. A ratio above 1.0 suggests more conservative policies and below 1.0, more liberal policies. Compute the ratio for each of the last three years. What do your results suggest about the company’s choice in accounting policies?