PART 1 - Company Information
Briefly provide answers to the following question for your assigned company.

1.	Provide a brief overview of the company and its mission.

2.	List one major issue or event the company had in the past year as discussed in the annual report. Have you read any news on this issue?

3.	What is the company ticker symbol?

4.	What classes of stock are issued by the company?

5.	List the dates of all dividend payments for the current year.

6.	Who is the CEO?

7.	Who is the independent auditor? What section of the annual report is audited? List page numbers.

8.	Where are the executive offices located?

9.	What was the common stock high and low for the past year?

10.	List all market sectors in which this company would be listed.

11.	What is the company's fiscal year-end?

12.	What is management's assessment of the company's risk associated with interest rates, changing prices and self-insurance?

 


PART 2 Financial Statement Research
Locate the following items for the current year and the prior year. What is the percentage change for each item listed? What observations can you make for each item? Is there anything in the annual report that supports your observations?


SALES

COST OF SALES

GROSS PROFIT

INTEREST EXPENSE

ADVERTISING EXPENSE (or SGA)

DEPRECIATION EXPENSE

INCOME TAX EXPENSE

NET INCOME (LOSS)

CASH

INVENTORY

TOTAL CURRENT ASSETS

FIXED ASSETS (PPE)

LONG TERM DEBT

TOTAL EQUITY

 



Financial Statement Analysis

a. Calculate the following ratios for the current fiscal year and the prior year.



DEBT TO OWNER’S EQUITY RATIO


CURRENT RATIO 


QUICK RATIO


RETURN ON SALES (PROFITABILITY)


INVENTORY TURNOVER 




1.	Based upon your computations in part (a), does the company's liquidity appear to have increased or decreased? Explain.

2.	Based upon your computations in part (a), what is your analysis of the company's profit margin?

3.	What other information would you need to help make a complete analysis of the company?

4.	Would you invest in this company? Explain why or why not using the ratios computed in part (a).