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This is due tomorrow (September 11th) at 12:00 noon 1. Obtain a copy of the 2009 annual report for a publicly held firm. Try to
This is due tomorrow (September 11th) at 12:00 noon
1. Obtain a copy of the 2009 annual report for a publicly held firm. Try to obtain an annual report for a retail or manufacturing firm. Do not use banks or other financial institutions. Be sure that the financial statement contains the following items: cost of goods sold, inventory, common stock, and interest expense. 2. In no more than two typed pages, address the following questions related to your selected company: a. What is the company's principal lime of business and major competitors? b. On what day does the company's fiscal year end? c. What method of depreciation is used by the company to depreciate its operational assets? d. What inventory method is used to state the value of the company's inventory? e. What is the largest source of cash from financial activities? f. What is the largest use of cash from investing activities? g. Describe one footnote that presents additional information about a reported financial statement number (provide the footnote number or letter). h. Describe one footnote that presents additional information not listed in the financial statement (provide the footnote number or letter). i. What is the average percentage markup on sales or the gross profit margin? j. What is the current price of the company's stock? 3. Compute the percentage change in the following items from the preceding year to the current year: (one typed page: use a table format with three columns: Last year, Current year, % Change (=/-) a. Earnings per share b. Gross margin percentage c. Sales revenue d. Net income e. Cash f. Inventory g. Total liabilities h. Total stockholder's equity 4. Calculate the 8 ratios for the current year. 5. Investment decision: Provide a statement of your decision to invest or not invest in this company's stock based on the research you have done and your interpretation of the company's long-term prospects. 6. Provide a copy of the following: a. Management's statement of responsibility for the financial statements b. Auditor's report Financial Statement Analysis Created by C Chung c. Financial statements: balance sheet, income statement, statement of stockholder's equity, and statement of cash flows d. D footnotes to the financial statementsStep by Step Solution
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