This project allows Financial Accounting students to apply course knowledge to a real world publicly traded corporation.Using research, critical thinking and analysis, students will prepare information required for business and investing decisions.All analysis will use the latest fiscal year data unless previous years are needed for averages or comparisons.

Requirements:

• Use the Home Depot Annual Report for 2014.

• Access on-line information sources to locate the Home Depot Annual Report for 2014 if you do not have the copy provided with the text.There is an abbreviated copy in the appendix at the back of the book.The following information will be needed:

Financial Statements

Notes to the Financial Statements

Auditor?s Opinion Report

Management?s Discussion

• Calculate the following Financial Ratios: Use the form provided in Blackboard and show all calculations.The Excel worksheet needed to complete the project is under the Assignments tab in Blackboard.If a ratio does not apply to your company write N/A for that ratio.

Debt to Assets Ratio

Current Ratio

Net Profit Margin

Asset Turnover

Assets to Equity Ratio

Return on Equity

Inventory Turnover

Average Days to Sell Inventory

Gross Profit Margin

Earnings per Share

Price-Earnings Ratio (The closing stock price on 1/31/14 was $76.64.)

Accounts Receivable Turnover

Average Days to Collect A/R

• Determine which accounting firm is the auditor of the company?s statements and what type of opinion the Auditor has issued. What is the auditor?s assessment of the company?s Internal Controls? (Put your response in the Excel worksheet you have been working on above.Be sure to use the correct tab at the bottom).

• What is your own opinion on the company?s financial condition? Would you invest in, loan money to or work in this company? Base your decision on your findings.Use at least 3 ratios to support your answer. (Put your response in the Excel worksheet you have been working on above.Be sure to use the correct tab at the bottom).

• Print the Excel Worksheets and submit to me by July 10, 2017 or email the worksheets to me by the same date.

• Be sure to read and follow all directions.For the ratios, you must list the formula, show your work (the numbers you are using in your calculation), and the ratio answer in the appropriate columns on the worksheet.The current ratio is completed as an example.

The Home Depot Annual Report for 2014 For the fiscal year ended February 2, 2014 RATIO Current Ratio Debt to Asset Net Profit Margin Asset Turnover Return on Equity Inventory Turnover Average Days to Sell Inventory Gross Profit Margin Return on Assets Earnings Per Share FORMULA Current Assets Current Liabilities Price-Earnings (Google the stock price for Jan 31, 2014 Accounts Receivable Turnover Average Days to Collect A/R WORK 15279 10749 ANSWER 1.42 Determine which accounting firm is the auditor of the company's statements and what type of opinion the Aud What is the auditor's assessment of the company's Internal Controls? (This is 3 separate questions) What is your own opinion on the company's financial condition. Would you invest in, loan money to or work in Use at least 3-4 ratios to support your opinion and 3 -4 reasons. Notes for completing the Project 1 To find the Dividends and Other, see the Retained Earnings column on page A.7 Combine Cash Dividends and Other and place on Trial Balance in column of normal balance for dividends. 2 The formulas for the ratios are listed on the last page of the book (except the Current Ratio and the Debt to Asset which can be found within the chapters of your book). The list also includes a page reference for each ratio so that you can look up the reatio in a chapter an read more about it. 3 The Return on Assets ratio is not listed your book. The formula is Net Income/Total Assets. 4 In order to determine the average common shares outstanding for the Earnings per Share Ratio, please see the Stockholders Equity section on page A5. You will need the shares outstanding on January 30th, 2014 and January 31, 2013. Both are listed on this page. 5 For the price/earnings ratio, you need the closing stock price on January 31st, 2014 (This was a Friday and the last day the stock was traded for the year being reported). You can look up the stock price using Google or Yahoo Finance. 6 The opinion on the Audit Report is given towards the very bottom of the report. There are 4 opinions that could be given: Unqualified, Qualified, Adverse and Disclaimer Ratio and the udes a page his was a Friday e stock price using e are 4 opinions that FINANCIAL ACCOUNTING - ACC110 Summer 2017 Annual Report Project Due: July 10, 2017 Possible points: 25 This project allows Financial Accounting students to apply course knowledge to a real world publicly traded corporation. Using research, critical thinking and analysis, students will prepare information required for business and investing decisions. All analysis will use the latest fiscal year data unless previous years are needed for averages or comparisons. Requirements: Use the Home Depot Annual Report for 2014. Access on-line information sources to locate the Home Depot Annual Report for 2014 if you do not have the copy provided with the text. There is an abbreviated copy in the appendix at the back of the book. The following information will be needed: Financial Statements Notes to the Financial Statements Auditor's Opinion Report Management's Discussion Calculate the following Financial Ratios: Use the form provided in Blackboard and show all calculations. The Excel worksheet needed to complete the project is under the Assignments tab in Blackboard. If a ratio does not apply to your company write N/A for that ratio. Debt to Assets Ratio Current Ratio Net Profit Margin Asset Turnover Assets to Equity Ratio Return on Equity Inventory Turnover Average Days to Sell Inventory Gross Profit Margin Earnings per Share Price-Earnings Ratio (The closing stock price on 1/31/14 was $76.64.) Accounts Receivable Turnover Average Days to Collect A/R Determine which accounting firm is the auditor of the company's statements and what type of opinion the Auditor has issued. What is the auditor's assessment of the company's Internal Controls? (Put your response in the Excel worksheet you have been working on above. Be sure to use the correct tab at the bottom). What is your own opinion on the company's financial condition? Would you invest in, loan money to or work in this company? Base your decision on your findings. Use at least 3 ratios to support your answer. (Put your response in the Excel worksheet you have been working on above. Be sure to use the correct tab at the bottom). Print the Excel Worksheets and submit to me by July 10, 2017 or email the worksheets to me by the same date. Be sure to read and follow all directions. For the ratios, you must list the formula, show your work (the numbers you are using in your calculation), and the ratio answer in the appropriate columns on the worksheet. The current ratio is completed as an example