Steps Part I

1. Choose two publicly traded companies. Ensure that they are:
   1. In the same industry
   2. Similar size
   3. Similar market
2. Get copies of the most recent annual reports, or financial statements. Ensure that you have the income statements and balance sheets for three years. These can be found online from TSX www.tsx.com website, the New York Stock Exchange www.nyse.com or the companys websites.
3. Submit the companies to the professor for approval. No two teams can choose the same companies; therefore, it is first come first serve.
4. Perform a vertical analysis on both companies.
5. Comment on at least three points, interpreting the data into management information.
6. Perform a horizontal analysis on both companies.
7. Comment on at least three points, interpreting the data into management information.
8. Perform a ratio analysis on both companies.
9. Comment on at least three points, interpreting the data into management information.
10. Find any policies or practices information on each of the two companies that might explain one of the trends or variances. This information can be found in financial news, company press releases, or the MD&A (management discussion and analysis), in the annual reports.

Company: Imperial Oil