ACCOUNTING -FINANCIAL REVIEW

Description

OBJECTIVE: The objective of this final assignment is to show what you have learned during this semester’s exploration of Accounting, the language of business. Select one of the following companies and use yahoo finance (or an alternate similar source) to locate and review the balance sheet, income statement and statement of cash flows. This assignment should be prepared professionally and formatted well and include proper citations for sources used. SELECT ONE THAT MOST RELATES TO YOUR MAJOR: • Cisco • Disney • Google • Catarpillar • CVS 1. Company Profile: (15 points) For this section you will locate pertinent information for the company you chose and provide an executive summary of the Letter from the Shareholders from the Annual Report. This section should be a 250 word executive summary, include in your description historical information about your company and any key financial milestones or situations that may have occurred recently. You should incorporate the following items into your executive summary. • Mission Statement of your company • Date of Incorporation • Name of CEO 2. Industry Profile: (35 points) For this section you will locate pertinent company information contained on financial websites like yahoo finance ( or similar source) • Define the Industry to which your company belongs. Describe what makes a company part of the industry.

• What is the company’s Ticker Symbol? • What stock exchange is the company listed? • Display in a graph your company’s stock price for the past two years using an excel graph. Describe any that may have occurred within the past two years that would have had an impact on the performance of your company’s stock. 3. Financial Statement Research: (35 points) For this section locate data from both the Income Statement and Balance Sheet for your company from Annual Report. You should include the TWO MOST CONSECUTIVE YEARS available for each of the items listed below. Using an excel spreadsheet, calculate the percentage change for the two consecutive years and include that change. • Sales • COGS • Gross Profit (Gross Margin) • Net Income (or Loss • Cash • Total Current Assets • Total Current Liabilities • Total Assets • Total Liabilities 4. Financial Statement Analysis; (35 points) Using the financial statement information, calculate the following ratios for the prior two fiscal years. For each ratio you should show the formula used, enter your company’s numbers into that formula, compare the ratio (remember to use the last two years of data) Then, explain what the ratios may indicate for the company in 2-3 sentences for each one (be as specific as possible, and include chapter concepts such as liquidity, etc.) • Current Ratio or Liquidity • Profit Margin (Return on sales) • Return on Assets • Total Debt to Total Equity Ratio • EPS (do not calculate this one research it online) 5. Interpretive Analysis; (25 points) A. Explain what other information you would want to have in order to make a better decision on the overall health of your company. You should include at least one additional ratio, and then 2 other quantitative or qualitative aspects for the business. B. Do you believe the company would be a good investment for the short-term; for the long-term? You can use additional research for your answer. Give two specific reasons based on the information you gathered in all of the previous sections. 6. References, Sources and Formatting; (5 points) Please cite your references for the information used in this report. Be sure to present all of your information in