For: Amazon year 2020

Market Update: (Sock price this weel) Price on date OVERVIEW OF FINANCIAL STATEMENT By now you have recented your Financial statement and hare narrowed your focus to one compayy. This assignment will provide both an overview of the Financial Analysis of your chosen company and a table of contents to help you complete fluture assignments more efficiently. HELPFUL ADVICE: You will be able to complete the remaining assignments more readily if you talse the time now to: a. Malie copies of pages 2 and 3 of this assignment after you have completed them. It will serve as your table of contents for future assignments. b. Malie a copy of the five-year (or more) summary of selected financial data from your Financial Statement. It contains several liey numbers that will be required in future assignments. c. Print industry comparisons. One useful Web site is Reuters. com. * - Under the "Tews and Marliets" "ab, click on Stoclss. - Enter either the ticler symbol or company name. - Across the top of the next screen, you will see an extensive menu of options for obtaining more information about your company. You will find much of this useful. - For ratios and industry comparisons, choose the Financials option from this menu. - Print the resulting pages. 1. Staple these three items together and place them and your company's Financial Statement in the front pocket of a folder that has both pockets and prongs. 2. Write your name on the outside of the folder in the upper right-hand 3. As you complete you Financial Analysis Project assignments, place them in the prongs with the most recent assignment on top. ttt+tttt+tt+tt+ttt+t *Another useful Web site is finance.yahoo.com Name of company chosen: Balance sheet date: 1. REVIEW THE FINANCIAL ANALYSIS THAT YOU HAVE RECEIVED. IT WILL CONTAIN SEVERAL SECTIONS: a. FINANCIAL HIGHLIGHTS. This section provides a summary of selected financial re- sults over a number of years. You may find two schedules providing hightights: one brief summary near the front of the Financiat Analysis and a more detailed summary in the financiat section. This second schadule may be called Five-Year Summary of Selected Financial Data. Note its page number here. b. THE CHAIRMAN'S LETTER. This letter provides the chairman's overview of the past year and developments which will affct the next year. Page(s) c. THE COMPANY, ITS PRODUCTS, ITS EMPLOYEES. This section may contain a number of color photographs and will hightight the products and accomplishments of the company. Pages d. MANAGEMENT DISCUSSION AND ANALYSIS. This section discusses operating re- sults, industries in which the company operates, financing and investing activities, significant events, trends and developments. Page e. THE FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATE- MENTS. This section contains the balance sheet(also called statement of financial position), income statement, statement of cash flows and statement of stockholders' equity. The ac-companying notes, as indicated at the bottom of each of the above statements, are an integral part of the financial statements. The financial statements cannotbe understood without refer- ence to the notes. BalanceSheetIncomeStatementStatementofCashFlowsPagePage Statement of Stockholders' Equity Page. Notes to the financial statements: (Inchude ALI moters. Attach an additional page if necessary.) notes: Title of note Note \# Page Page Page Page Page Page Page f. MANAGEMENT REPORT ON INTERNAL CONTROL Page g. THE INDEPENDENT AUDITOR'S REPORT: REPORT ON INTERNAL CONTROL Page REPORT ON TH h. Other: Page Page_ Page 2. REVIEW THE CHAIRMAN'S LETTER TO THE SHAREHOLDERS. Summarize the major points made in the letter. Page(3) on which letter appears: Locate the management report(s) and the independent auditor's report(s). Answer the following questions. Page(s) a) Who is responsible for the preparation and integrity of the financial statements? b) Does the company maintain a system of intemal controls? Why? c) Does the company have an audit committee? What is its purpose? d) What is the name of the independent public accountant (avditor)? (Note: There are two independent auditor's reports: (1) a report on internal control, and (2) a re-port ou the financial statements. The following questions relate to the financial statement audit.) e) According to the auditor's report on the financial statements, what is the auditor's responsibility? f) According to the audit report, what is an audit? g) Summarize the auditor's opinion. FINANCIAL ANALYSIS PROJECT ASSIGNMENT 4 Marliet Update: (Sock price this week) Price on date_ Locate the company's balance sheet. Balance sheet date: Page on which balance sheet appe: 1. The accounting equation is Assets = Liabilities + Stockholders' Equity. Replacing the words in the accounting equation with dollar amounts, give the company's accounting equation at the end of the current and prior years. 2. Calculate the company's current ratio for both this year and the prior year. Show vour computations. This year: Current assets = Current liabilities Last year: = Explain what information this ratio provides. (Hint: See the Financial Statement Analysis chapter of your textbook.) Use complete sentences. Has the current ratio improved or worsened? Explain. Use complete sentences- Calculate the company's debt to total assets ratio (also called total debt to equity) for both this year and the prior year. Show yolu computations. This year: TotalassetsTotalliabilities= Last year: = Explain what information this ratio provides. Use complete sentences. Has the ratio improved or worsened? Explain. Use complete sentences. 3. Compare these ratios to industry averages. Use the ratios you printed in Assignment 3. Cusrent ratio Your company Industry Debt to equity ratio How do the results for your company compare to industry averages? FURTHER ANALYSIS 4. Prepare common-size balance sheets for the two years presented, expressing each bal- ance sheet item as a percentage of total assets (Total assets =1000 ). (Kefer to the dircexsion of vertical asslyyis in the finsocial statemeat anslyis chapter of your text.) Use a spreadisheet program such as Excel to do this part of the assignment. Label the spreadsheet "Common Size Analysis - Balance Sheet." Insert the accounts and classifications in cohumn A and the amounts for each of the two years in cohums B and C. In cohunns D and E, use aformula to convert the amounts in columns B and C to percentages. INFORMATION FOR DECISION MAKING 5. Answer the following questions: Lre complete sentences. a. In which assets does the company have the most significant investment? b. Is the company financed primarily with debt or equity? Explain using the information ob- tained in questions 14. c. Is the debt primarily short-term or long-term? Explain. Market Update: (Sock price this weel) Price on date OVERVIEW OF FINANCIAL STATEMENT By now you have recented your Financial statement and hare narrowed your focus to one compayy. This assignment will provide both an overview of the Financial Analysis of your chosen company and a table of contents to help you complete fluture assignments more efficiently. HELPFUL ADVICE: You will be able to complete the remaining assignments more readily if you talse the time now to: a. Malie copies of pages 2 and 3 of this assignment after you have completed them. It will serve as your table of contents for future assignments. b. Malie a copy of the five-year (or more) summary of selected financial data from your Financial Statement. It contains several liey numbers that will be required in future assignments. c. Print industry comparisons. One useful Web site is Reuters. com. * - Under the "Tews and Marliets" "ab, click on Stoclss. - Enter either the ticler symbol or company name. - Across the top of the next screen, you will see an extensive menu of options for obtaining more information about your company. You will find much of this useful. - For ratios and industry comparisons, choose the Financials option from this menu. - Print the resulting pages. 1. Staple these three items together and place them and your company's Financial Statement in the front pocket of a folder that has both pockets and prongs. 2. Write your name on the outside of the folder in the upper right-hand 3. As you complete you Financial Analysis Project assignments, place them in the prongs with the most recent assignment on top. ttt+tttt+tt+tt+ttt+t *Another useful Web site is finance.yahoo.com Name of company chosen: Balance sheet date: 1. REVIEW THE FINANCIAL ANALYSIS THAT YOU HAVE RECEIVED. IT WILL CONTAIN SEVERAL SECTIONS: a. FINANCIAL HIGHLIGHTS. This section provides a summary of selected financial re- sults over a number of years. You may find two schedules providing hightights: one brief summary near the front of the Financiat Analysis and a more detailed summary in the financiat section. This second schadule may be called Five-Year Summary of Selected Financial Data. Note its page number here. b. THE CHAIRMAN'S LETTER. This letter provides the chairman's overview of the past year and developments which will affct the next year. Page(s) c. THE COMPANY, ITS PRODUCTS, ITS EMPLOYEES. This section may contain a number of color photographs and will hightight the products and accomplishments of the company. Pages d. MANAGEMENT DISCUSSION AND ANALYSIS. This section discusses operating re- sults, industries in which the company operates, financing and investing activities, significant events, trends and developments. Page e. THE FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATE- MENTS. This section contains the balance sheet(also called statement of financial position), income statement, statement of cash flows and statement of stockholders' equity. The ac-companying notes, as indicated at the bottom of each of the above statements, are an integral part of the financial statements. The financial statements cannotbe understood without refer- ence to the notes. BalanceSheetIncomeStatementStatementofCashFlowsPagePage Statement of Stockholders' Equity Page. Notes to the financial statements: (Inchude ALI moters. Attach an additional page if necessary.) notes: Title of note Note \# Page Page Page Page Page Page Page f. MANAGEMENT REPORT ON INTERNAL CONTROL Page g. THE INDEPENDENT AUDITOR'S REPORT: REPORT ON INTERNAL CONTROL Page REPORT ON TH h. Other: Page Page_ Page 2. REVIEW THE CHAIRMAN'S LETTER TO THE SHAREHOLDERS. Summarize the major points made in the letter. Page(3) on which letter appears: Locate the management report(s) and the independent auditor's report(s). Answer the following questions. Page(s) a) Who is responsible for the preparation and integrity of the financial statements? b) Does the company maintain a system of intemal controls? Why? c) Does the company have an audit committee? What is its purpose? d) What is the name of the independent public accountant (avditor)? (Note: There are two independent auditor's reports: (1) a report on internal control, and (2) a re-port ou the financial statements. The following questions relate to the financial statement audit.) e) According to the auditor's report on the financial statements, what is the auditor's responsibility? f) According to the audit report, what is an audit? g) Summarize the auditor's opinion. FINANCIAL ANALYSIS PROJECT ASSIGNMENT 4 Marliet Update: (Sock price this week) Price on date_ Locate the company's balance sheet. Balance sheet date: Page on which balance sheet appe: 1. The accounting equation is Assets = Liabilities + Stockholders' Equity. Replacing the words in the accounting equation with dollar amounts, give the company's accounting equation at the end of the current and prior years. 2. Calculate the company's current ratio for both this year and the prior year. Show vour computations. This year: Current assets = Current liabilities Last year: = Explain what information this ratio provides. (Hint: See the Financial Statement Analysis chapter of your textbook.) Use complete sentences. Has the current ratio improved or worsened? Explain. Use complete sentences- Calculate the company's debt to total assets ratio (also called total debt to equity) for both this year and the prior year. Show yolu computations. This year: TotalassetsTotalliabilities= Last year: = Explain what information this ratio provides. Use complete sentences. Has the ratio improved or worsened? Explain. Use complete sentences. 3. Compare these ratios to industry averages. Use the ratios you printed in Assignment 3. Cusrent ratio Your company Industry Debt to equity ratio How do the results for your company compare to industry averages? FURTHER ANALYSIS 4. Prepare common-size balance sheets for the two years presented, expressing each bal- ance sheet item as a percentage of total assets (Total assets =1000 ). (Kefer to the dircexsion of vertical asslyyis in the finsocial statemeat anslyis chapter of your text.) Use a spreadisheet program such as Excel to do this part of the assignment. Label the spreadsheet "Common Size Analysis - Balance Sheet." Insert the accounts and classifications in cohumn A and the amounts for each of the two years in cohums B and C. In cohunns D and E, use aformula to convert the amounts in columns B and C to percentages. INFORMATION FOR DECISION MAKING 5. Answer the following questions: Lre complete sentences. a. In which assets does the company have the most significant investment? b. Is the company financed primarily with debt or equity? Explain using the information ob- tained in questions 14. c. Is the debt primarily short-term or long-term? Explain