STEP 1-Download Annual report of the selected company from Annualreports.com

Go tohttps://www.annualreports.com/Enter the name of company in the search box and download the

latest available Annual report.

Once you select your company, go to Wiki in your blackboard, edit the table in wiki to include your name and company name. This is to avoid duplication. You cannot select an already selected company andtherefore it's very important for you to enter your data in wiki as soon as you make a decision.

You will be downloading Form 10-K (ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year 2019) for your selected company. This document is mandatory for all corporations registered under UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

Form 10-K document is a gold mine of information about the filing company and you are required to go through important areas of this document make a note about the company you selected.You must pick up only those data you need and leave out the rest.

Once you download the document, go to the pages containingCONSOLIDATED STATEMENTS OF OPERATIONSandCONSOLIDATED BALANCE SHEETS.The data is available for two years. Most of the data you need to make assignment will be available from these two statements plus statementof cash flows and statement of shareholders' equity.

The next step is to import this data into an Excel worksheet ( You may have to enter data physically as 10-K documents are typically in PDF format) and further calculations are to be done using this imported data. Name your excel file in this format: your first name - ID# - Company name. (If your name is John Everyone and your selected company is Amazon; your file name will be John-1000021-Amazon)

Make sure to use dollar values with a separator for every thousand. (For example, 10 million dollars is written as $10,000,000).

Even though you are required to use only two years' data for your calculations, addition of past databeyond 2 years will attract extra credit (10%).

The steps are arranged in the same sequence as your learning process and you are expected to work on the file every week and submit the completed file on due date through BB

STEP 2-Use sheet 1 to place the above Extracted data. Insert a text box and provide a short company profile. MARKS 10

STEP 3- Use Sheet 2 to make the latest cashflow statement in the general format. Insert comments in a text box MARKS 10

STEP 4- Use Sheet 3 to calculate important/relevant financial ratios. You can choose a minimum of 10 ratios. Insert comments in a text box MARKS 10

STEP 5- Use Sheet 3 to make a common size balance sheet using the earliest year as base year. (If you use 2019,2018,2017 and 2016 data; year 2016 will be your base year). Insert comments in a text box.

MARKS 10

STEP 6- Use Sheet 4 to prepare Income statement Percentage change analysis using the same base year as in previous step. Insert comments in a text box MARKS 10

STEP 7- Use Sheet 5 to Calculate Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL), and Degree of Combined Leverage (DCL). Insert comments in a text box MARKS 10

STEP 8- Use Sheet 6 to calculate Cash Conversion Cycle (CCC) for last two years. Insert comments in a text box MARKS 10

STEP 9- Use Sheet 7 to paste the income statement for the years selected and project the values into next 3 years (for 2020,2021 and 2022) using FORECAST function in Excel. Calculate Operating cashflow for the projected years (Net income available for shareholders + Depreciation & Amortization).

Assume, a new project going operational in December 2019 which will increase the cashflows for the years 2020 to 2022 by 25%. The cost of this project is, 10% of added cashflow from 2020 to 2022. This investment is done in 2019. Assume the cost of capital for this project funding is 7.5%. Calculate NPV of this project and state whether the project is acceptable.

For example, if the total projected cashflows for 3 years is $100 million, additional inflow due to the new project will be $25 million (25% of $100 million). This cash inflow of $25 million will be generated equally (8.33 million each) in the 3 years. Cost of this project is $10 million (10% of 100 million). The funds cost 7.5%.