ACCOUNTING REPORT
Financial Statement Analysis Project
Objective and Requirements
Help strengthen and apply your knowledge of financial accounting theory, concepts, and practice
Analyze a company’s business, industry it operates in, financial position and profitability, and form your investment recommendation
You will analyze the company on the topics we cover in this course, and update your research report as the course progresses
At the end of semester, each group will submit a written report and give a presentation
Preparation
Select a S&P 500 company that meets the following criteria:
Can not be the company covered in the book (i.e., P&G, Coca-Cola, or PepsiCo)
Can not be in the financial industry (i.e., banks, insurance companies, real estate, financial services)
Must have financial reports for the past 10 years
Does not report losses for three consecutive years
Has good amounts of account receivables, inventories, property, plant and equipment
Suggestions:
Pick an industry that you can understand easily
Avoid FAANG
Preparation (cont’d)
Submit the company and its key financial figures for approval by Friday, January 18.
State briefly why you are interested in this company.
Key financial figures:
Current Market Cap and stock price
Net income & EPS for the last 10 years
Total assets, account receivables, inventories, property, plant and equipment, and common stockholders’ equity (total equity – preferred stockholders’ equity) for the last 10 years
Cash flow from operations for the last 10 years