1. Team Paper:

Overview

Select 2 competitors that are public companies. What industry are they in? For example, you might select Coke and Pepsi. Locate the 10-K (and the annual report) filed by the companies with the Securities and Exchange Commission (SEC). Turn in the entire project after your presentation. All information must be presented even if some group members are absent on the day of the presentation. The total project is worth 100 points. Please remember, a Paper and Presentation will be due for this Group Project.

INFORMATION Needed for APPLE vs Microsoft

Executive Summary & Key Factors

1) Read the Management Discussion and Analysis. You will find this in the 10-K required to be filed by the SEC. This report has a table of contents. Look for the current year for each company, determine what management says about the prior years results of operations, and discuss their plans for the companys future (10 points)

2) List five fun facts about the company. (For example, the company was named after someones granddaughter or it was founded in someones garage) (10 points)

Analysis

3) Prepare comparative and common size balance sheets and income statements for the most current 2 years available (e.g. 2017, 2016) for both companies. Present the common size financial statements and the comparative financial statements on an Excel Spreadsheet or as a table in PowerPoint. Make sure the financial statements are as of the year end for the companies (20 points). Write a sentence or sentences explaining big changes. List the year-end of the company.

4) Calculate all of the following ratios for the two years for each company: (Liquidity & Efficiency) Current Ratio, Accounts Receivable Turnover (if applicable), (Solvency) Debt Ratio and Equity Ratio and Debt to Equity ratio, (Profitability) Return on total assets, and Return on common shareholders equity. Write at least one sentence about each ratio and explain what it might reveal about the companys financial health. Compare these ratios to the industry (20 points).

5) How many shares of stock are issued and outstanding for each company? What types of stock have the companies issued (common and preferred)? Did the companies pay dividends? If so, when and how much per share was paid (10 points)? (declared, shareholders of record, payout date)

6) List the inventory costing method of each company (e.g. FIFO, LIFO, Weighted Average, or Specific Identification). What is the total inventory dollar amount on the balance sheet for both companies for both years. If the company is not a merchandiser (retailer), list at least one accounting practice used according to management or the annual report. (E.g., Lower of Cost or Market, Accrual Based Accounting, etc.). Review Chapter 6 Accounting 101 (5 points)