All publicly traded companies are required to submit their financial statements to the Securities and Exchange Commission (SEC). Using the website for EDGAR, the SEC company filings search database (see instructions in Canvas) , look up the financial statements for two similar companies (e.g., Tesla and GM, Walmart and Target). Answer the following by comparing the companies you chose:

Find the cash section of the balance sheet and compare the cash balances between the companies.

Explaining which company has more cash on hand.

Give one example of an internal control over cash

Locate the section in the financial statements which discusses internal controls (may also say controls and procedures). Does the companys management certify that their controls are effective?

Find the asset section of the balance sheet, choose one of the following:

Locate information on accounts receivable either on the face of the financial statements or in the footnotes. What method does each company use to account for uncollectible receivables?

Locate information on inventory. What cost method does each company use to record their inventory balances?

Locate information on fixed assets (property, plant & equipment). Which company has more fixed assets? Can you find information in the financial statements that tells you what type of depreciation method the company uses?

Find the liabilities section of the balance sheet.

Which company has the greatest amount of debt?

Briefly explain details of the companies liabilities (whether the company has greater short-term or long-term debt, who are the creditors, information on contingencies?)

Look at the equity section of the balance sheet.

What type of stock does the company have (common, preferred, both).

What are the companies earnings per share? Some companies report it, others you may have to calculate it. Refer to Chapter 8.

Using information in chapters 5 through 8, select one metric-based analysis ratio to calculate (i.e., accounts receivable turnover, asset turnover, debt ratio, etc.). Explain what the ratio means, and which company is better or worse based upon the ratio chosen.