ACCOUNTING REPORT

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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