Financial Statement Project

Goal: To gain familiarity with obtaining and reviewing financial data of public companies

Guidelines:

Select a Publicly Traded company.

Choose smaller companies. Large companies are more complicated.

Do NOT choose a financial institution or insurance company as their statements are different from most of what we see in this class.

Obtain the data listed below.

Provide references to the page number of the source document.

Highlight the area on the source document with project submission. The vast majority of applicable companies will have web pages with Investor Relations sections containing published financial data.

Some of the data needed may not be on the Income Statement, Balance Sheet etc., but may be able to be found in the Notes to Financials.

You will need to obtain the most recent 10-K (Annual Report) and Proxy Statement and identify the following:

Annual Revenue

Annual Net Income

Current Ratio

Depreciation and Amortization Expense (look on Cash Flow)

Compensation of CEO (look in Proxy)

Any famous board members?

Who are, and amount paid to External Auditors for each category of service (proxy)

Amount of Goodwill, if any

Amount if Inventory, if any

Fiscal Year End

Where is the headquarters located

Gross Margin Ratio for current year

Cash Flow from Operations for current year

Briefly describe one accounting pronouncement found in Footnotes (FIN 48, FAS 141R, FAS 123, &, etc.)

Age of CEO (check Proxy)

What is the Allowance for Doubtful accounts? What is this as a % of Gross A/R

You should not need to go to outside sources, other than the 10K and the Proxy (DEF 14A) to obtain data. Most of what is asked for is a REQUIRED DISCLOSURE in the public filings.

Instructions: You are required to submit a minimum of 5 pages, addressing all the items mentioned above. You must submit the document in APA format style. Cover page, reference page and well cited sources.