Each student will select a company whose stock is publicly traded. The company must be publicly traded to make sure that the student has ready access to the companys financial statements. Email me your choice of company before you begin to work on the project and I will let you know if it is acceptable and available. No more than one student can report on a particular company, so before you begin the work, you want to make sure the company you want to study has not already been selected by another student.

The report is to be double-spaced with the first line of each paragraph indented five spaces. Any quote longer than three lines should be single-spaced and indented five additional spaces from both the left and right margins. Font size should be 12. Page numbers should be at the top left and formatted as "Your Last Name - Page Number." Include a cover page with your name, subject, semester, and title of your paper. Include a bibliography of works cited in your report. Include a copy of the financial statements used in your analysis as an appendix to your report. The content of the report should include the following in the order listed:

Cover Page

Table of Contents

Four sections:

1. Executive Summary - Summary of report's objectives and findings. This should be brief; similar to an abstract. Basically describes what the reader will learn from reading your report. (1/2 - 3/4 Pages)
2. Analysis overview - Describe your approach to analyzing the company, e.g., questions asked, evidence gathered, tools applied. (2 Pages)
3. Evidential matter - This is your evidence and your analysis of the evidence. (about 7 Pages 1 page for overview of company, 2 for common-size statements (balance sheet and income statement), 1 for table of ratios, 2 to 3 pages for analysis) Your analysis should be based on the overview of the company, common-size statements and the ratios and discuss what this evidence tells you about the company. Basically, this analysis tells the reader what you see when you examine the ratios and common-size statements, not what you gleaned from reading other peoples comments about the company. Your bibliography should be short because the substance of the report is your informed opinion about the company based on the evidence you have accumulated.
4. Conclusions - Summarize inferences and conclusions from your evidential matter and analysis, addressing the issues of companys solvency and profitability. The evidence you gather must support your conclusions. (1 to 2 pages)

Appendix - Copies of the financial statements used in your report.

Excluding the works cited page(s) and appendices; the paper should be between 10 to 15 pages in length.

Evidential Matter:

Overview of Company

Brief history of company, highlighting milestones; description of company's major business activities; identify auditors, board members and executive officers; summary of at least two news stories about the company; identify and describe at least two business or economic risks the company is facing, how the company is responding to those risks, and potential financial consequences

Common-size Statement Analysis

Prepare common-size balance sheets and income statements for the past three years

Ratio Analysis

Compute the following ratios for the latest two years and present the information in a table.

• Profitability

• Earnings per Share
• Gross Profit Percent
• Profit Margin
• Return on Assets
• Return on Common Equity

• Liquidity

• Cash Ratio
• Quick Ratio
• Current Ratio
• Liquidity Activity Ratios
• Accounts Receivable Turnover
• Days to Collect Receivables
• Inventory Turnover
• Days to Sell Inventory

• Capital structure and solvency

• Debt to Equity
• Times Interest Earned