ACC 110: Accounting Concepts Individual Project

Each individual in ACC110 will be required to complete a research project.

For Class Two:

Choose the company you will research:

• This should be a publicly traded company that you can easily get financial and non- financial data for. To avoid analytical complications, you should choose a company that is: (1) headquartered in the U.S., (2) focused primarily in a single line of business (e.g. not a broad conglomerate), and (3) not a financial services firm (e.g. bank or insurance company).

• Obtain a copy of the companys annual report on-line and provide a link to those financial statements or save a copy of the financial statements and upload that with your Word document outlining the company you want to use for this project.

• Submit this to your instructor for approval. Summary Word document due in Class 6:

  1. 1) Introduction: Summary of the company and its industry, including current issues facing the company, and the industrys competitive situation.

  2. 2) Accounting/Financial Analysis: Description of the financial health of the company based on your analysis to include the following at a minimum:

Ratio analysis - Calculate the following ratios (Show all work in arriving at your ratios) for at least the past two years and summarize the trends represented and what they mean for the financial health of the company. You should utilize industry comparisons/averages to draw your conclusions. If a certain ratio does not apply to your company, you may suggest to the instructor a more valuable alternative.

• Current ratio

• Debt to Equity ratio

• Inventory turnover ratio

• Accounts receivable turnover ratio

• Return on equity

• Gross profit percentage

• Net profit margin percentage

• Return on assets

• Earnings per share (common stock)

Trend analysis of financial statement account balances.

Analyze and comment on any large fluctuations between financial statement account balances between the years presented in the financial statements and comment on whether this is a good or bad trend.

3) Accounting Policies After reviewing the notes to the financial statements, answer the following:

o What inventory valuation method is used?

o What depreciation method is used? 4) Conclusion:

o Summarize the financial position of the company as a result of the analysis you have done.

Notes for Assignment:

o All calculations of ratios must be shown to receive credit. o Trendanalysisshouldincludebothcommentsonthetrendsoftheratiosbetweenyears

and also review the financial statement accounts and comment on any large

fluctuations in account balances between years. o YouMUSTincludealinktotheactualfinancialstatementsusedorincludeaseparate

file with the financial statements. Note, you must use the last annual report (10-K) filed for this project. Do not use Quarterly reports ( 8-K).

o Worth up to 110 points: o Week 2 submission:

o Week 6:

• Introduction:

• Accounting / Financial Analysis:

• Accounting Polices:

• Conclusion:

10 points

5 points 70 Points 5 points 10 points