Obtain the annual report of a public traded company. You can get the reports either from the companies' Web sites or just Google, "Company X's annual report." You can also type in, "Company X 201810 -K." The 10-K is what is filed with the SEC each year. The latest year you will probably fine will be for years 2020 and 2021. 1. After selecting your company, examine their financial statements and calculate the following ratios: (see pages F17-26 through F1727 in your eText in Chapter 17 for the ratio formulas) Compute the current ratio, debt ratio, inventory tumover, gross profit percentage, accounts receivable tumover, debt to equity, profit margin, and rate of return on total assets for two years using the numbers presented in the annual report and analyze if the company's position is improving or deteriorating. So compare 2021 with 2020. This year due to COVID you might see that things did not improve, or thing might have improved in 2021 compared to 2020. So if that is the case discuss that, but it could be the other direction. Depends on the company/industry you choose. Also discuss the company's profitability and liquidity. Basically explain what the ratios tell you about your company's performance. (Show your calculations) Example: Current Ratio = Current Assets/Current Liabilities =25,000/10,000=2.5 2. Calculate the percentage increase or decrease on the income statement and balance sheet for the two year period using horizontal analysis discussed in chapter 17. 3. Study the companies' balance sheets to see - What classes of stock each company issued? - Does the company have Treasury stock? If so, how many shares and how much is the cost? - See if the company has issued any bonds (liability section) and read what information is presented in the notes about the bonds. - See if the company has any investments on the balance sheet like we went over in Chapter 15. You might also have to read through the notes of the financial statements to get more information. 4. Read through the notes of the financial statements to see if the company has any contingencies. 5. Find the Statement of Cash Flows and specify if the company uses the direct or indirect method to report operating cash flows. 6. Locate the independent accountant's report or auditors report and tell me which accounting firm performed the audit. 7. If the company has inventory, which method do they use to evaluate inventory? Also, if it is manufacturing company does the company have Raw Materials, Work In Process, and Finished Goods on the Balance Sheet? 8. Does the company have a fiscal year? (If so, why do you think it chose that year end?) Please prepare a short 5 minute summary on the above information. Add this at the beginning of the project. Explain what the company does/sell, what industry it is in and its major competitors. You might even decide to prepare analysis on a competitor's financial statement to show how your company compares financially to others in its industry. Be creative and add any other information you would like to help describe your company. (you can use graphics too) For example, as you read through the beginning of the annual report, (in the management discussion & analysis) you might find that there is something interesting that the company is planning. I would also like for you to add why you chose the company that you did. You can use PowerPoint (a slide on each topic) or summarize the information using word or excel like a handout." Make sure you get your information from an actual annual report and not "yahoo finance." Obtain the annual report of a public traded company. You can get the reports either from the companies' Web sites or just Google, "Company X's annual report." You can also type in, "Company X 201810 -K." The 10-K is what is filed with the SEC each year. The latest year you will probably fine will be for years 2020 and 2021. 1. After selecting your company, examine their financial statements and calculate the following ratios: (see pages F17-26 through F1727 in your eText in Chapter 17 for the ratio formulas) Compute the current ratio, debt ratio, inventory tumover, gross profit percentage, accounts receivable tumover, debt to equity, profit margin, and rate of return on total assets for two years using the numbers presented in the annual report and analyze if the company's position is improving or deteriorating. So compare 2021 with 2020. This year due to COVID you might see that things did not improve, or thing might have improved in 2021 compared to 2020. So if that is the case discuss that, but it could be the other direction. Depends on the company/industry you choose. Also discuss the company's profitability and liquidity. Basically explain what the ratios tell you about your company's performance. (Show your calculations) Example: Current Ratio = Current Assets/Current Liabilities =25,000/10,000=2.5 2. Calculate the percentage increase or decrease on the income statement and balance sheet for the two year period using horizontal analysis discussed in chapter 17. 3. Study the companies' balance sheets to see - What classes of stock each company issued? - Does the company have Treasury stock? If so, how many shares and how much is the cost? - See if the company has issued any bonds (liability section) and read what information is presented in the notes about the bonds. - See if the company has any investments on the balance sheet like we went over in Chapter 15. You might also have to read through the notes of the financial statements to get more information. 4. Read through the notes of the financial statements to see if the company has any contingencies. 5. Find the Statement of Cash Flows and specify if the company uses the direct or indirect method to report operating cash flows. 6. Locate the independent accountant's report or auditors report and tell me which accounting firm performed the audit. 7. If the company has inventory, which method do they use to evaluate inventory? Also, if it is manufacturing company does the company have Raw Materials, Work In Process, and Finished Goods on the Balance Sheet? 8. Does the company have a fiscal year? (If so, why do you think it chose that year end?) Please prepare a short 5 minute summary on the above information. Add this at the beginning of the project. Explain what the company does/sell, what industry it is in and its major competitors. You might even decide to prepare analysis on a competitor's financial statement to show how your company compares financially to others in its industry. Be creative and add any other information you would like to help describe your company. (you can use graphics too) For example, as you read through the beginning of the annual report, (in the management discussion & analysis) you might find that there is something interesting that the company is planning. I would also like for you to add why you chose the company that you did. You can use PowerPoint (a slide on each topic) or summarize the information using word or excel like a handout." Make sure you get your information from an actual annual report and not "yahoo finance