Select a public corporation (traded on a U.S. stock exchange)


Question Description:

35

Select a public corporation (traded on a U.S. stock exchange) with which you are familiar or which interests you. Using the corporation’s most recent annual report and the Internet, develop a report about the corporation. The purpose of the report is to provide the CFO/CEO of your company with information on which to base a decision as to whether the company you are reviewing is a good investment for the company you work with. Include in your profile (in report format) the data that responds to the following questions about the company being analyzed: 1. Name of corporation and location of headquarters 2. Nature of their operation and industry classification 3. What is the date of the fiscal year end? 4. On which stock exchange is the company actively traded? What is the stock symbol? 5. Description of primary source of revenue (what does it sell, manufacture or what services are provided?). 6. Total assets reported on the most recent balance sheet. 7. Total cash and cash equivalents reported on the most recent financial statements. What was the change from the previous year? 8. What is the corporation’s Current Ratio. Is it good or bad, in your opinion? 9. Total revenues for the most recent income statement. 10. Total operating expenses for the most recent income statement. 11. Net income (loss) reported for the most recent income statement. What was the % increase/(decrease) in income from the previous year? 12. What is the amount of Retained Earnings at the end of the year? 13. Are there any contingencies reported in financial statements or in the notes to the financial statements? If so, what are they? 14. What inventory method does the firm use? 15. What depreciation method does the firm use? 16. How many shares of common stock were authorized, issued, outstanding at the end of the current year? (provide all three amounts) 17. Does the firm have Preferred stock? If so, are they cumulative? How many are authorized, issued and outstanding at the end of the current year? 18. Does the firm have Treasury stock? If so, how many shares and at what cost? 19. What is the earnings per share of common stock reported on the financial statements. 20. What was the closing market price of the stock on the Friday before this report is due? 21. Report the High and Low prices of the stock for the past 12 months. 22. Did the firm declare or pay any dividends during the year? Report any dividends paid for each share of stock during the past year. 23. Report the total cash flows for each of Operating, Investing and Financing activities. 24. Did the firm have bonds and/or other long term debt reported on their balance sheet? If so, how much? 25. Did the firm have any investments? If so what kind(s) and which were categorized as long term and which were shown as short term investments? 26. If the firm had stock investments, report amounts for Trading, Available for Sale and Held to Maturity securities. 27. Were there any investments that were recorded using the equity method? If so, in which companies were these investments held? 28. Find and read the auditor’s report in the annual report. State the name of the auditors. 29. Did the firm comply with the Sarbanes Oxley Act? If so, how did you determine their compliance? 30. Read the letter from the CEO or chairman of the board. Summarize his opinion about the current year’s results and the company’s future plans. 31. Find and read at least one recent news article (within the last six months) about your company. Summarize the important points from the article in the body of your report (1 paragraph) – attach the original article to your paper. NOTE: An article that reports on annual earnings or annual dividend will NOT be sufficient 32. Comment on why you selected that company and, assuming you have $10,000 to invest, if you would/would not invest in that company. Provide reasons why you would or why you would not invest in the company, based on facts provided f…

Answer

35