1 Financial Analysis Project Guidelines 1. Obtain the most recent annual report for a company included in the Dow 30 ( http://www.cnbc.com/dow - components/) . The report should contain at least three years of income statement data and two years of balance sheet data. This will be your base company.

2. Next, obtain the most recent annual report for one of the primary competito rs of your base company. Again, the report should contain at least three years of income statement data and two years of balance sheet data.

3. For your base company, analyze at least three items on the income statement that would be important to an investo r. Discuss whether your company's performance related to those items appear to be improving, deteriorating, or remaining stable.

4. For your base company, analyze at least three items on the balance sheet that would be important to an investor. Discuss wh ether your company's performance related to those items appear to be improving, deteriorating, or remaining stable.

5. Identify two items not included in (or derived from) the financial statements that you think would be important to someone considering whet her to invest in your company. Discuss your reasons for including these two items. (Hint: you might want to consider items you have discussed in other business courses.)

6. Compare your base company's financial statements with those of the second company y ou chose. If you were deciding to invest in one of the two companies, which company would you choose? Why? (Note: your answer in this section must include, but need not be limited to, financial issues.) Notes:

? You must submit the entire annual report for each company being discussed.

Course Finance Paper 1 Financial Analysis Project Guidelines 1. Obtain the most recent annual report for a company included in the Dow 30 ( http://www.cnbc.com/dow components/) . The report should contain at least three years of income statement data and two years of balance sheet data. This will be your base company. 2. Next, obtain the most recent annual report for one of the primary competito rs of your base company. Again, the report should contain at least three years of income statement data and two years of balance sheet data. 3. For your base company, analyze at least three items on the income statement that would be important to an investo r. Discuss whether your company's performance related to those items appear to be improving, deteriorating, or remaining stable. 4. For your base company, analyze at least three items on the balance sheet that would be important to an investor. Discuss wh ether your company's performance related to those items appear to be improving, deteriorating, or remaining stable. 5. Identify two items not included in (or derived from) the financial statements that you think would be important to someone considering whet her to invest in your company. Discuss your reasons for including these two items. (Hint: you might want to consider items you have discussed in other business courses.) 6. Compare your base company's financial statements with those of the second company y ou chose. If you were deciding to invest in one of the two companies, which company would you choose? Why? (Note: your answer in this section must include, but need not be limited to, financial issues.) Notes: You must submit the entire annual report for each company being discussed