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Need help I started with best buy but I need to finish before Nov 21st . ACCOUNTING 6300 FINANCIAL STATEMENT ANALYSIS INSTRUCTIONS Read Chapter 13
Need help I started with best buy but I need to finish before Nov 21st .
ACCOUNTING 6300 FINANCIAL STATEMENT ANALYSIS INSTRUCTIONS Read Chapter 13 and Appendix 13A before you begin! 1. Pick a company from the list given below (notice they are all retailers). You will need the most recent two annual SEC 10-K filings or Annual Reports for your company. Some places to look for the data include the company website or the SEC website (EDGAR database) http://www.sec.gov/edgar/quickedgar.htm To find the financial statements, go to the company's webpage and look for a link called Investor Relations or Corporate Information or something along those lines. This may be found at the bottom of the company's main webpage. You should see information on Annual Report, SEC Filings, Stock Charts, etc. If you use the SEC filings (either through the EDGAR link above or the company website), you will need annual filings and you will need the most recent 2 years' 10-Ks. That is the SEC version of the annual report. Look for the financial statements in the 10K (it will be item 8). The SEC 10-K information may be downloaded in Excel which may save you some time. If you prefer, you may use the most recent 2 years' Annual Reports for the financial statements as long as they are not condensed (consolidated is fine) financial statements. Do not use the financial statements on Yahoo or Google Finance or MSN Money because they have summary formats and do not give you the detail account information. You will need the most recent financial statements and you must use the annual financial statements, not quarterly. Feel free to e-mail me if you have questions about the information you need. Please check out the "video" explanation of the project and the FAQs found in the project folder on WTClass. By November 21st, do the following: 2. Using an Excel spreadsheet* and your company's financial statements, compute/find at least 10 of the following for the most recent two years (chapters with information on each ratio are in parenthesis next to the ratio, refer to the tables in Section 13.3 Ratio Analysis on WileyPlus or pages 661-662, Appendix 13A provides a great example of ratio analysis): Current ratio (2,13) Working capital (not really a ratio) (2, 13) Inventory turnover ratio (6, 13) Accounts Receivable turnover ratio (8, 13) Debt to total assets ratio (2, 13) Times interest earned (aka interest coverage) (10,13) Return on assets (9,13) Asset turnover ratio (9, 13) Return on equity (11, 13) Gross profit ratio (5, 13) Earnings per share (2, 13) Price-earnings ratio (13) Profit margin ratio (5, 13) 3. Also using the spreadsheet, prepare the following for the most recent two years: Comparative Income Statement - Vertical Analysis (Illustration 13-12 in Section 13.2 Comparative Analysis on WileyPlus or see page 658 for example) Comparative Balance Sheet - Horizontal Analysis (Illustration 13-9 in Section 13.2 Comparative Analysis on WileyPlus or see page 656 for example) 4. Find industry comparative numbers for as many of the items calculated in # 2 above, as possible. See specific instructions on "Industry Comparative Ratios" in the Project Folder. The industry comparative numbers should be the most recent available. To receive full credit, at least 6 different comparative ratios must be presented (out of the 13 listed above). You should refer to Appendix 13A. 5. Using the information gathered and calculated above, write up an analysis of your company. Begin with a brief history of the company to help the reader understand the company. Next include a discussion of the company's financial performance as seen through ratios and other calculations, whether favorable or unfavorable. The analysis should also give a conclusion on how the company has performed in the past and what its future looks like. The analysis is to be written by you, not copied from a professional analyst's work. When writing up the analysis, refer back to the ratios and other calculations above to support your conclusions. The data should be analyzed from two different perspectives: across time and across companies (industry data). Be sure to explain what the calculations mean. The analysis should be done in a professional manner (typed, double-spaced, 1\" margins, 10-12 font, proper grammar, appendices, cover page, graphs, references, etc.). The written portion of the paper should be about 2-5 pages. 6. The following is to be turned in by November 21st: Report, with analysis and supporting data (cutting and pasting between Excel and Word might save you some time). Submit your finished project with a cover sheet that incudes your name and class section in the Financial Statement Analysis Dropbox (attach your Word and/or Excel files or pdf). Please make sure it is ready for me to print. The breakdown of the points is as follows: Item Ratio computations Industry comparative analysis Vertical analysis Horizontal analysis Point s 28 12 10 10 Analysis (written portion) Sources & Format Total 30 10 100 List of Companies Abercrombie & Fitch Home Depot AutoZone Lowe's Barnes & Noble Macy's Inc. Bed, Bath, & Beyond Target Best Buy JC Penney Costco Wholesale TJX Companies Inc. Dollar Tree Stores Tractor Supply GameStop *If you have never used Excel, you may calculate your ratios and prepare your vertical and horizontal analyses manually and type them in a Word document. 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