1. Obtain the most recent annual report your approved company in the _______ industry. The reports should contain at least three years of financial statement data.

2. Analyze at least 3 (three) items on the income statement for your company that would be important to an investor, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer.

3. Analyze at least 3 (three) items on the balance sheet for your company that would be important to an investor, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer.

4. Analyze your company’s investing and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that your company appears to be employing.

5. Identify 2 (two) items not included in (or derived from) the financial statements that you think would be important to someone considering whether to invest in your company. Discuss your reasons for believing that these two items about the company would be important in making an investment decision. (Hint: you might want to consider items discussed in other business classes.)

6. Compare your company’s financial statements with competitors in the _______ industry. If you were making a decision to invest in one of the two companies, which company would you choose? Why? (Note: your answer in this section must include some financial issues, but your answer need not be limited to a discussion of financial issues.)

7. Create a verbal presentation of your project. You may record yourself presenting your project via PowerPoint or you may record yourself in front of the cam as if in the classroom presenting the project. The video must be submitted with your final project submission.

Notes:

1. You must submit the entire annual report for each company being discussed. The PDFs are acceptable.

2. Your written analysis must include page references to relevant portions of the annual reports, and the relevant portions of the annual reports must be highlighted. Your written report must also contain appropriate quotation marks for quoted material and appropriate citations for material taken from sources outside the financial statements. APA compliant is a must.

3. Your analysis is limited to 5 - 7 pages, and must be typed, double-spaced, and have 12-point font. Title and Reference pages are not included in six-page requirement.

4. The assignment is due on the date specified in the syllabus and Moodle.

Suggestions:

1. Download your company’s most current year’s annual report. This is typically a pdf.

2. Read the Annual Report. Understand who your chosen company is through research.

3. Review the financial statements in the annual report.

4. Transpose the four financial statements into MS Excel. Make sure to include ALL years.

a. Balance Sheet

b. Income Statement

c. Statement of Cash Flows

d. Statement of Retained Earnings

5. Analyze the Balance Sheet and determine the rates of change for all accounts

6. Analyze the Income Statement and determine the rates of change for all accounts

7. Analyze the Statement of Cash Flows and determine the rates of change for all accounts

8. Analyze the Statement of Retained Earnings and determine the rates of change for all accounts.

9. Transpose the industry data into MS Excel for use as base estimates and standards.

10. Determine the rates of change for your industry for the same time period of the report.

Helpful Links:

1. How to create a Balance Sheet in MS Excel

2. Inputting Data & Formulas in MS Excel