Instructions:Select a publicly traded company and find their annual reports via the internet. You will conduct a financial analysis on this company. Present this information as if your boss has requested it. Use the outline and topics provided. Make the information clear and easy to find (i.e., use tables, when possible). Appendices can be used to make the document less cluttered, however, make sure you state where to find the information.

1. Select a publicly traded company and obtain the most recent annual report.

a. Identify the company's industry.

b. Identify the stock exchange(s) where your company's stock trades.

c. List your company's major industries and major competitors. Make sure at least two of the competitors are also publically traded. If there are not two additional competitors that are also publicly traded, select another company.

2. Section 2: Capital Structure

a. List the total liabilities, both short and long term, and the total stockholders' equity for past 2 years presented in your balance sheet.

b. List the number of shares of outstanding stock (common and preferred) for 2 years shown in the report.

c. List the stock market prices quoted in the annual report.

d. Analyze/assess/discuss your findings.

3. Section 3: Assets

a. Record the following weekly market activity for the company's stock for the previous year (any day such as Friday, Monday etc.). Make sure to record:

i. Closing price

ii. One source: search online for yahoo finance, click on search for news, symbols or companies, type in your company name and press enter (or click on) - follow instructions on web page, click on historical data, click on daily - change to weekly, click on apply, get close prices.

iii. Analyze, evaluate, and discuss the information

b. List the total of Property, Plant, and Equipment for the years covered in your annual report

i. List the total of Accumulated Depreciation associated with Property, Plant, and Equipment for 2 years listed in your annual report

ii. List the total of all assets for 2 years listed in the annual report

iii. List the total of the current assets for 2 years listed in the annual report

iv. As shown in the balance sheet, has your company had significant changes in asset structure, such as major purchases of other companies, investments, or discontinued operations?

v. Identify the method or methods used by your company to value the inventories.

1. List the total dollar value of the inventory for 2 years on balance sheet presented in the annual report.

2. Compute the percentage of inventories to total assets for 2 years of your annual report's balance sheets and assess the results.

c. List the Cost of Goods Sold and the Gross Profit for your company for 2 years in income statement appearing in the annual report.

i. Calculate the percentage of Cost of Goods Sold to Net Sales and the percentage of Gross Profit to Net Sales for 2 periods and assess the results

d. Analyze/assess/discuss your findings

4. Section 4: Cash Flows

a. List the total for operating, investing, and financing cash flows for 2 years shown in the report's statement of cash flows.

i. Assess each cash flow and examine the report to see what additional information is provided.

b. What method is used to prepare the cash flow statement, direct or indirect?

c. Analyze/assess/discuss your findings

5. Section 5: Financial Ratio Analysis

a. Compute the following ratios:

i. Liquidity Ratios

1. Current Ratio

ii. Solvency Ratios

1. Debt-assets Ratio

iii. Profitability Ratios

1. Profit Margin

2. Return on Assets

3. Return on Owners' Equity

b. Analyze/assess/discuss your findings

6. Section 6: Conclusions

a. How financially healthy is this company? (Support your answer)

i. Should you invest in this company? (Why or why not?)