1. Identify CVS by the location of the home office, the CEO, fiscal year (ending date), description of the principal products and/or services, primary geographic activity, external corporation auditors, and the most recent stock price and dividend per share.

2. Describe the industry that CVS is in and the industry outlook. Review the corporation management letter as well as your research on the corporation and summarize the corporations future plans.

3. Review the financial statements. Show CVS's accounting equation. Determine the gross profit, net income from operations and net income for the last two years and comment on the changes between the years. In the cash flow discuss how the cash flow from operating activities was different from the net income, whether the company is expanding through investing activities and the most important source of financing. Is the Income statement a multi-step or single-step statement?

4. Describe CVS's significant accounting policies relating to revenue recognition, cash, accounts receivable, short-term investments, inventory, and property,plant and equipment.

Please document your calculations for 10 ratios of your choice for the last two years and explain the significance of each ratio in your own words as how it relates to the company you are analyzing.

Finally provide your recommendations based on the outcome of the ratios and the industry situation, of whether you would invest in this company.

You can access an annual report of the company of your choice by going to the corporations home page and clicking on the investor page. You can download the annual report for the most recent year. Please provide me the link to the company website.

No more than four pages should be needed to accommodate this project, but you can use your judgement. Ratios can be done in Excel and/or incorporated into the work document.

Grading will be based on the following:

1. Completion of items 1, 2 , 3 and 4 will be 10% each

2. Completion of financial ratios is 25%

3. Discussion of the ratio significance is 25%

4. Recommendation is 10%