1. Select a real company. It can be foreign, domestic, large, small and from any industry.

2. What industry does the firm operate in? Examine the firms past and future position within the industry. Is it a leader? What percent market share does it hold? Describe the services and products that the firm produces. 3. Who are the companys important managers (aka: insiders) CEO, CFO, etc.? What is their experience? Is it applicable to their current position within the firm? Are they owners of the firms stock/bonds? How are they compensated? Are they buyers or sellers of the firms stock/bonds?

4. Explore the Company 10-K (Annual Report) and find its Income Statement, Balance Sheet and Statement of Cash Flows. From the firms financial statements, calculate the following ratios: (Remember the 5 questions from Ch.4. Show calculations and indicate year) A. Firm Liquidity

1. Current Ratio

2. Acid-Test Ratio

3. Average Collection Period

4. Accounts Receivable Turnover

5. Inventory Turnover B. Operating Profitability

1. Operating Return on Assets

2. Operating Profit Margin

3. Total Asset Turnover C. Financing Decisions

1. Debt Ratio D. Return on Equity

1. Return on Equity E. Market-Value Ratios

1. Price/Earnings Ratio (P/E/ Ratio)

2. Price/Book Ratio