I just got assigned this group project for a fiancial accounting project. The teacher will teach the stuff we need to learn as the course goes on but I was hoping to get ahead. Could someone offer basic definitions and where i can find all the information to do the project as well as the formulas needed for the ratios. The two companies are Hasbro and Mattel. Thank you!

PROJECT REQUIREMENTS (Your analysis should include the following but is not limited to these items.)

1. The project should begin with an introduction describing the nature of the entities being analyzed, the industry and environment in which they operate (e.g., competitors and regional, legal, environmental and economic issues).

2. Choose one company and perform a horizontal analysis of the statement of earnings. More specifically, calculate the year to year increase (decrease) for each line item presented in the statement of earnings for the two most recent years of data presented. Compute these increases (decreases) in both absolute dollars and in percentages.

3. Using the analysis performed in (2), identify two percentage increases (decreases) that you believe are significant and warrant further attention. Do not select a subtotal in the body of the income statement (i.e. gross margin, operating income, etc.)Indicate whether you believe that these are favorable or unfavorable trends and discuss your interpretation of such trends along with their implications.

4. Using the financial statements from both companies, calculate the financial ratios shown below for the most recent year of data presented and conduct an intercompany analysis. For each ratio computed: Explicitly describe what each ratio means in the context of the companies that you are analyzing. Identify the company that is stronger on each particular measure. Discuss your interpretation of the comparison and its implications.

1. CURRENT RATIO

2. GROSS MARGIN PERCENTAGE and PROFIT MARGIN PERCENTAGE

3. ACCOUNTS RECEIVABLE TURNOVER AND DAYS TO COLLECT

4. ALLOWANCE FOR DOUBTFUL ACCOUNTS TO ACCOUNTS RECEIVABLE

5 INVENTORY TURNOVER AND DAYS TO SELL

6. RETURN ON EQUITY

7. RETURN ON ASSETS

8. DEBT TO EQUITY

9. TIMES INTEREST EARNED

5. What type of inventory cost flow assumption(s) do your companies employ?

6. What type of depreciation methods are employed by companies that you are examining?

7. Are there liabilities that may exceed the amounts reflected in their balance sheets?

8. Review the statement of cash flows for each organization and identify their major sources and uses of cash.

9. Read the Reports of the Independent Auditor. Are these reports reflective of standard unqualified audit reports? If not, explain the departure from the standard and indicate whether or not the departure is favorable or unfavorable.

10. Finally, if you had $50,000 to invest in one of the companies you have analyzed, which would be the better investment and why?