CORPORATE FINANCIAL STATEMENT ANALYSIS WORKSHEET

The corporate financial statement analysis project requires you to analyze a corporate annual report. The project is due in week/unit 8. You must turn in a photocopy of the balance sheet, income statement, and other information sources of your corporation along with this handout so the instructor can grade it.

General Information:

1. Name of corporation: KFC

2. Line of business: _________________________________________

3. Location of headquarters: _________________________________________

(City, State or Province, and Country)

4. Number of employees: _________________________________________

(This cannot be found in the financial statements but can sometimes be found elsewhere in the annual report.)

5. The annual report is for the fiscal year ended: ___________

Stockholders' Data:

6. Par or stated value of common stock, if any, per share: $__________

7. Number of shares outstanding: ___________

(This may not be found in the financial statements but can sometimes be found elsewhere in the annual report)

8. Number of different people owning shares: ___________

9. Closing price per share of common stock in The Wall Street Journal: _________

10. Does the corporation have preferred stock (yes/no)? ___________

11. Trading symbol/abbreviation used in The Wall Street Journal: ___________

Auditors' Report:

12. Name of audit firm: _______________________________________________

13. Opinion: _______________________________________________

("clean," "qualified," "adverse," or "disclaimer")

Historical Summary:

14. Number of years included: ___________

Balance Sheet: Be very careful to note whether the numbers in the financial statements are given in dollars, thousands of dollars, millions of dollars, etc. If you don't take care about this you could get this entire section wrong!

15. Total assets $________________

16. Cash $________________

17. Accounts receivable $________________

18. Quick assets $________________

19. Total current assets $________________

20. Total current liabilities $________________

21. Total long-term liabilities $________________

22. Amount of deferred taxes, if any $________________

Financial Ratios: Use the formulas from the textbook.

23. Working capital $________________

24. Current ratio _________________

25. Acid-test ratio _________________

26. Accounts receivable turnover _________________

27. Number of day's sales in receivable _________________

28. Inventory turnover _________________

29. Number of day's sales in inventory _________________

30. Ratio of plant assets to long-term liabilities _________________

31. Ratio of liabilities to stockholders' equity _________________

32. Number of times interest charges earned _________________

33. Number of times preferred dividends earned _________________

34. Ratio of net sales to assets _________________

35. Rate earned on total assets _________________

36. Rate earned on stockholders' equity _________________

37. Rate earned on common stockholders' equity _________________

38. Earnings per share on common stock ________________

39. Price-earnings ratio in The Wall Street Journal _________________

(This must be looked up. Use any edition of The Wall Street Journal printed during this class.)

40. Dividend yield in The Wall Street Journal _________________

(This must be looked up. Use any edition of The Wall Street Journal printed during this class.)

Financial Statements:

41. Number of notes to the financial statements _________________

42. Were the financial statement pages a different color

than the rest of the annual report? (Yes/No) _________________

Income Statement:

43. Income from continuing operation before income taxes

$___________ $___________

(Dollar amount) (Per share amount)

44. Taxes on continuing operations

$___________ ____________

(Dollar amount) (Per share amount)

45. Extraordinary gain or loss, net of tax (if any)

$___________ _____________

(Dollar amount) (Per share amount)

46. Gain or loss on discontinued operations, net of tax (if any)

$___________ _____________

(Dollar amount) (Per share amount)

47. Cumulative effect of change in accounting, principle, net of tax (if any)

$___________ _____________

(Dollar amount) (Per share amount)

48. Was the earnings per share given as "primary"

and "fully diluted"? ___Yes ___No

Miscellaneous

49. Name of the president or CEO: ___________________________________

50. Did the notes to the financial statements

discuss a contingent liability? ___Yes ___No