(in this case use JC pennys or amazon.com )Select one company that is of your interest to you. Locate the companys address on line and request a copy of their most recent annual report. Once you have the annual report, perform the following

Review the annual report and identify the major parts of the report (i.e. letter to the stockholder, financial statements etc.)

In you opinion, what is the most interesting part of the annual report? What is the least interesting?

Did the company have an increase or decrease in revenues? Read the management discussions and other parts of the annual report to determine what management has to say about revenues.

Was this company profitable during the most current year of operations?

What was the amount of cash flow generated from operation ? what were the major sources and the uses of cash?

What was the gross margin for the most recent year? What does the gross margin measurement tell you/

What type of audit opinion does the this annual report contain?( unqualified, qualified, disclaimer of opinion, adverse) what does it mean?

From the footnotes in the annual report, determine which depreciation methods are used and what the lives of the company has.

Determine how many shares of stock that the company has outstanding, what the current market price is for their stock, and the total book value of all the outstanding stock.

Chart this companys stock price for two weeks during the semester. Determine how much you would have gained or lost if you had owned 1000 shares of that companys stock.

Apply the analysis techniques discussed in the chapter 18 to evaluate the solvency, liquidity, and profitability of this company. Is the companys financial position improving over time? The ratios that should be used are: current ratio, inventory turnover, days sales in receivables, debt ratio, time-interest- earned ratio, rate of return on Net sales, rate of return on common stockholder equity, earnings per share.