I need help on my case project.

Search 2:24 PM Thu Oct 28 27% I Case 1-Ongoing Analysis Project.pdf ONGOING ANALYSIS PROJECT An important part of learning is application. To leam accounting, we must practice the skills taught and apply those skills to real world problems. To that end, we have designed a project to reinforce the lessons in each module and apply them to real companies. The goal of this project is to complete a comprehensive analysis of two or more) companies in the same industry. We will then create a set of forecasted financial statements and a valuation of the corupanies' equity. This is essentially what financial analysts and many creditors do. We might not aspire be an analyst or creditor, but by completing a project of this magnitude, we will have mastered financial reporting at a sufficient level to be able to step into any role in an organization. The goal of Module 1's assignment is to obtain and begin to explore the financial reports for two publicly traded companies that compete with each other. 1. Select two publicly traded companies that compete with each other. They must be publicly traded, as private company financial statements will not be publicly available. While the two counpanies do not need to be head- to-head competitors, their main lines of business should broadly overlap. 2. Download the annual reports for each company, and peruse thern. At this stage, choose companies that are profit- able (net income is positive) and that have positive retained earnings and stockholders' equity. Select companies whose financial statements are not overly complicated. (Probably avoid the automotive, banking, insurance, and financial services industries Automotive companies have large financial services subsidiaries that act like banks for customers, which complicates the analysis. Banking, insurance, and financial services have operations that differ drastically from the usual industrial companies common in practice. While these companies can be analyzed, they present challenges for the beginning analyst.) 3. Use the SEC EDGAR Website to locate the recent Form 10-K (or other annual report such as 20-F or 40-F) (www.sec.gov). Download a spreadsheet version of financial statements. Use Appendix 1A as a guide. 4. Use the annual report and the financial statements, along with any websites, to assess the companies' business environment. Use Porter's Five Forces or a SWOT analysis to briefly analyze the competitive landscape for the two companies. The aim is to understand the competitive position of each company so we can assess their financial statements in a broader business context. 5. Explore the financial statements, and familiarize yourself with the company The following give an indi- cation of some questions that guide us as we look for answers. What accounting standards are used, U.S. GAAP, IFRS, or other? What is the date of the most recent fiscal year-end? Determine the relative proportion of short and long-term assets. Determine the relative proportion of liabilities and equity Calculate the retumn on assets (ROA) for the most recent year. Disaggregate ROA into the two component parts as shown in Exhibit 1.9. Compare the numbers/ratios for cach compal:y. Find the companies' audit reports. Who are the auditors? Are any concerns raised in the reports? Do the audit reports differ significantly from the one for Under Armour in this module? Search 2:24 PM Thu Oct 28 27% I Case 1-Ongoing Analysis Project.pdf ONGOING ANALYSIS PROJECT An important part of learning is application. To leam accounting, we must practice the skills taught and apply those skills to real world problems. To that end, we have designed a project to reinforce the lessons in each module and apply them to real companies. The goal of this project is to complete a comprehensive analysis of two or more) companies in the same industry. We will then create a set of forecasted financial statements and a valuation of the corupanies' equity. This is essentially what financial analysts and many creditors do. We might not aspire be an analyst or creditor, but by completing a project of this magnitude, we will have mastered financial reporting at a sufficient level to be able to step into any role in an organization. The goal of Module 1's assignment is to obtain and begin to explore the financial reports for two publicly traded companies that compete with each other. 1. Select two publicly traded companies that compete with each other. They must be publicly traded, as private company financial statements will not be publicly available. While the two counpanies do not need to be head- to-head competitors, their main lines of business should broadly overlap. 2. Download the annual reports for each company, and peruse thern. At this stage, choose companies that are profit- able (net income is positive) and that have positive retained earnings and stockholders' equity. Select companies whose financial statements are not overly complicated. (Probably avoid the automotive, banking, insurance, and financial services industries Automotive companies have large financial services subsidiaries that act like banks for customers, which complicates the analysis. Banking, insurance, and financial services have operations that differ drastically from the usual industrial companies common in practice. While these companies can be analyzed, they present challenges for the beginning analyst.) 3. Use the SEC EDGAR Website to locate the recent Form 10-K (or other annual report such as 20-F or 40-F) (www.sec.gov). Download a spreadsheet version of financial statements. Use Appendix 1A as a guide. 4. Use the annual report and the financial statements, along with any websites, to assess the companies' business environment. Use Porter's Five Forces or a SWOT analysis to briefly analyze the competitive landscape for the two companies. The aim is to understand the competitive position of each company so we can assess their financial statements in a broader business context. 5. Explore the financial statements, and familiarize yourself with the company The following give an indi- cation of some questions that guide us as we look for answers. What accounting standards are used, U.S. GAAP, IFRS, or other? What is the date of the most recent fiscal year-end? Determine the relative proportion of short and long-term assets. Determine the relative proportion of liabilities and equity Calculate the retumn on assets (ROA) for the most recent year. Disaggregate ROA into the two component parts as shown in Exhibit 1.9. Compare the numbers/ratios for cach compal:y. Find the companies' audit reports. Who are the auditors? Are any concerns raised in the reports? Do the audit reports differ significantly from the one for Under Armour in this module