As a team, select an industry to analyze. A list of companies classified by industry can be obtained by accessing www.fpinfomart.ca and then choosing "Companies by Industry." You can also find a list of industries and companies within each industry via http://ca.finance.yahoo.com/investing. A list of industries can be obtained by clicking on "Annual Reports" under "Tools".

Each group member should acquire the annual report for a different publicly traded company in the industry. (Library files, the SEDAR service at www.sedar.com, or the company's website are good sources.)

Required:

Each team member should write a short report answering the following questions about the selected company. Discuss any patterns 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 are the top three asset accounts by size? What percentage is each of total assets? (Calculated as Asset \(\mathrm{A} \div\) Total Assets)

2. What are the major investing and financing activities (by dollar size) for the most recent year?

(Look at the statement of cash flows.)

3. Ratio Analysis

a. What does the debt-to-equity ratio measure in general?

b. Compute the debt-to-equity ratio for the last three years. (You may find prior years' information in the section in the annual report called "Selected Financial Information," or search for prior years' annual reports.)

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.