The objective of this project is to familiarize you with the information that is contained in the annual report of a public company.

1. Choose a public corporation for your project from the collection of corporate annual reports.

a. NAME OF COMPANY:

b. INDUSTRY - What, specifically, does your company do?

c. What is the address of your firm?

d. Does your firm have a web site? If so, what is the address?

2. Gather some basic information on your company.

a. State of incorporation

b. This report is for fiscal year ending (mm/dd/yy):

c. Who is the independent auditor of your company?

d. Who is the CEO of the company?

e. Who is the CFO of the company?

f. Who is the Chairman of the Board of Directors of your company?

g. How many people are on the Board of Directors?

h. On which exchange does your company trade its stock?

i. What is the ticker symbol for your company?

3. The Income Statement

a. How many zeroes are omitted from the presented numbers?

b. What amount did your company report for each of the following? Revenue from sale of goods and services _________________ Cost of Goods Sold _________________ Operating Income _________________ Income tax expense ________________ Interest expense ________________ Net income _________________ Primary Earnings per Share _________________

4. The Balance Sheet

a. Does your organization's Annual Report include a classified balance sheet (segregates current and long term assets and liabilities)?

b. A comparative balance sheet (presents more than one year)? If so, what years are presented for each statement?

c. How much was reported for each item below? Current assets _______________ Property, plant and equipment (net) ________________ Current liabilities ________________ Long-term liabilities ________________ Common stock ________________ Contributed capital in excess of par (aka Additional paid-in capital) ________________ Retained earnings (or deficit) ________________

5. The Statement of Stockholders' Equity

a. Is there a Statement of Stockholders' Equity in your Annual Report?

b. What is the par value of the stock?

c. How many shares are authorized and outstanding at year end?

d. Did your company issue a cash dividend, a stock dividend or declare a stock split during the year? If so, indicate the amount of the dividend or split.

6. Notes to the Financial Statements

a. What inventory method does your company use (LIFO, FIFO, etc.)?

b. Which depreciation method does your organization use?

c. Did your company list any subsequent events in the notes?

7. What is your overall opinion of the annual report? Did it include the required information? Would the average investor be able to understand the information presented?