As a team, select an industry to analyze (industry lists can be found at www.marketguide.com/mgi/

Y.html and www.hoovers.com; click on companies and industries). Each team member should acquire the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (Library files, the SEC EDGAR service at www.sec.gov, Compustat CD, or the company itself are good sources.) On an individual basis, each team member should then write a short report answering the following questions about their selected company. 1. Which of the two basic reporting approaches for cash flows from operating activities did the company adopt? 2. What is the quality of earnings ratio for the most current year? What were the major causes of differences between net income and cash flow from operations? 3. What is the capital acquisitions ratio for the three-year period presented in total? How is the company financing its capital acquisitions? 4. What portion of the cash from operations in the current year is being paid to stockholders in the form of dividends?

Discuss any patterns across the three companies that your team observes. Then, as a team, write a short report comparing and contrasting your companies using these attributes. Provide potential explanations for any differences discovered.