*****I need a TWO-PAGE Executive Summary WITH IN-TEXT CITATION (too many tutors seem to forget this); APA format (NO TITLE PAGE) with at least 4 references. The companies we are writing on are 'Disney' and 'Comcast. ***** ALSO.... Create OUTLINE with the below information. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ GROUP FINANCIAL STATEMENT ANALYSIS PROJECT The objective is to prepare a report comparing two firms that are competitors in the same industry to determine which company appears to be a better investment from the viewpoint of a potential shareholder. Format for the report: A two-page executive summary should precede the report. The executive summary serves to highlight the key findings of the report. The body of the report should include a(n): Discussion of how the competitor firms were chosen (We chose Disney and Comcast). Include a discussion of the North American Industry Classification System (NAICS). Cite references! Discussion about the background of each company, the current forces that affect its operations, and its expectations for future years (management's discussion and analysis (MD&A) will be useful here). You should site at least four articles obtained from reliable sources, such as PROQUEST and Lexis/Nexis which are available online through the Nova online library resources. According to the management report (also called Responsibility for Financial Reporting), who bears responsibility for the integrity and objectivity of the financial statements? -What means does management use to assure that the financial information is reliable? -An audit committee is comprised of several members of the board of directors. The committee acts as the liaison between the independent auditor and the corporation. What is the responsibility of the Audit Committee of the Board of Directors? Discuss the audit report: -Who is the corporations independent auditor and in which city is the auditor located? -List and explain the types of audit opinions. -Read the auditors opinions of the companies and indicate the type of opinion expressed by the auditors. -An auditors report will state the responsibility of the auditor. What is the responsibility of the auditor with regard to the financial statements? -What guidelines do the auditors use to conduct the audit? -Do the auditors believe the financial statements were presented fairly? What statements in the audit opinion support your conclusion? Present a comprehensive financial statement analysis. Prepare the common size statements and all the ratios and amounts for the measures given below for the three most recent years for both of your companies and present in a clear tabular form. Then discuss each category given below. -Common-Size financial Statements -Ratios from chapter 15 (i.e. working capital, current ratio, acid-test ratio, accounts receivable turnover, average collection period, inventory turnover, average sale period, operating cycle, total asset turnover, times interest earned, debt-to-equity ratio, equity multiplier, gross margin percentage, net profit margin percentage, return on total assets, return on equity, earnings per share, price-earnings ratio, dividend payout ratio, dividend yield ratio, and book value per share). Ratio sources found in www.sec.gov, www.freeedgar.com, www.hoovers.com, etc. For each company, chart the net income and cash flow from operations over the last three years. Based on a comparison of the income statement to the statement of cash flows, what accounts explain the greatest differences between net income (loss) and cash flow from operations. Comment on the quality of the earnings numbers. Discussion of the two firms' relative profitability, liquidity, and leverage. (Note: for this project, you may assume that your two reports are comparable because they cover the same fiscal period, although in fact they may not.) Discussion of the similarities and differences in financial reporting practices that might affect your analysis. Are the firms using the same or different methods of accounting for property, plant, and equipment, inventory, intangibles, etc.? How might such differences affect your analysis? Discussion of how you felt the disclosures provided by the two companies compared in terms of clarity and completeness. Critical Analysis regarding which firm you believe would be a superior investment for an equity investor. This is where the points are.