FINANCIAL ACCOUNTING - ACC110

Summer 2017

Annual Report Project

Due: July 10, 2017

Possible points: 25

This project allows Financial Accounting students to apply course knowledge to a real world publicly traded corporation.Using research, critical thinking and analysis, students will prepare information required for business and investing decisions.All analysis will use the latest fiscal year data unless previous years are needed for averages or comparisons.

Requirements:

• Use the Home Depot Annual Report for 2014.

• Access on-line information sources to locate the Home Depot Annual Report for 2014 if you do not have the copy provided with the text.There is an abbreviated copy in the appendix at the back of the book.The following information will be needed:

Financial Statements

Notes to the Financial Statements

Auditors Opinion Report

Managements Discussion

• Calculate the following Financial Ratios: Use the form provided in Blackboard and show all calculations.The Excel worksheet needed to complete the project is under the Assignments tab in Blackboard.If a ratio does not apply to your company write N/A for that ratio.

Debt to Assets Ratio

Current Ratio

Net Profit Margin

Asset Turnover

Assets to Equity Ratio

Return on Equity

Inventory Turnover

Average Days to Sell Inventory

Gross Profit Margin

Earnings per Share

Price-Earnings Ratio (The closing stock price on 1/31/14 was $76.64.)

Accounts Receivable Turnover

Average Days to Collect A/R

• Determine which accounting firm is the auditor of the companys statements and what type of opinion the Auditor has issued. What is the auditors assessment of the companys Internal Controls? (Put your response in the Excel worksheet you have been working on above.Be sure to use the correct tab at the bottom).

• What is your own opinion on the companys financial condition? Would you invest in, loan money to or work in this company? Base your decision on your findings.Use at least 3 ratios to support your answer. (Put your response in the Excel worksheet you have been working on above.Be sure to use the correct tab at the bottom).

• Print the Excel Worksheets and submit to me by July 10, 2017 or email the worksheets to me by the same date.

• Be sure to read and follow all directions.For the ratios, you must list the formula, show your work (the numbers you are using in your calculation), and the ratio answer in the appropriate columns on the worksheet.The current ratio is completed as an example.