Question
Select a public company that interests you and identify its major competitor for this project. Obtain the company's most recent annual report on Form 10-K.
Select a public company that interests you and identify its major competitor for this project. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's financial statements and accompanying notes. The Form 10-K can be obtained either (a) by referring to the investor relations section of the company's website or (b) by using the company searchfeature of the SEC's EDGAR database service found atwww.sec.gov/edgar/searchedgar/companysearch.htmlLinks to an external site..
For the company chosen, complete the following(A-F):
A. Name of the corporation
B. State of incorporation
C. Nature of its operations
D Based on the information contained in the financial statements forthe most recent yearanswer the following questions in a power point format.
- What depreciation methods does the company used to compute depreciation expense?
- How much depreciation expense does the company report on its income statement?
- What is the initial cost of the company's fixed assets?
- What is the book value of the company's fixed assets?
- What types of intangible assets, if any, does the company report on its balance sheet?
- What amount of current liabilities does the company report on its balance sheet at the end of the most recent year? What types of current liabilities does the company report?
- Have current liabilities increased or decreased from the prior year? If so, by what amount?
- Does the company disclose any contingent liabilities in the notes to the financial statements? If so, briefly describe the nature of these contingent liabilities.
- How much of the company's long-term debt will come due in the coming year?
E . Analyze the Cash Flow Statements.
Note: The statement of cash flows reports cash flows from three types of cash flow activities. Analyze each activity in terms of cash inflows and outflows and what is the net cashflow for each activity. Did they do better in terms of which activity for the year? What is the net effect of all the three activities for the year? Please don't attach the statement of cashflow copy as part of the analysis.
F. What are the important 1-2 current events of the company?
G.Based on the information in the company's annual report, compute the following forthe most recent year, rounding ratios and percentages to one decimal place, except for per-share amounts. For the information in (G), compute the ratios for both the chosen company and the identified competitor, analyze and compare the two companies' liquidity, solvency and profitability. ( See the attached format)
- Liquidity analysis:
- Working capital
- Current ratio
- Quick ratio
- Accounts receivable turnover
- Number of days' sales in receivables
- Inventory turnover
- Number of days' sales in inventory
- Solvency analysis:
- Ratio of liabilities to stockholders' equity
- Times interest earned
- Profitability analysis:
- Asset turnover
- Return on total assets
- Return on stockholders' equity
- Earnings per share
- Price-earnings ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A Name of the corporation Apple Inc B State of incorporation California C Nature of its operations Apple Inc is a multinational technology company that designs develops and sells consumer electronics ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started