10 K Home depot

Home Depot 10-k Project

Each group should select a large corporation to be the subject of your Form 10-K case assignment for this course. Select a company of interest to your group, for example a hospital system if the groups interest is healthcare. The company should be a public company that has a 10-K filed with the SEC so that you can be sure that adequate information is publicly available so that you can meet the requirements of the case. You may access a Company’s Form 10-K at: https://www.sec.gov/edgar/searchedgar/companysearch.html .This case primarily addresses some topics covered in the material covered in the course for the entire term, as well as, a review of some financial accounting topics. Specific research questions presented below are the primary research questions to be answered. Submit a 15-25 page paper (12 pt. Times Roman double spaced) that fully addresses all issues and makes appropriate use of charts and graphs to present numerical data. The page range is to give you an idea of what is expected. I do not believe that you can prepare an adequate report in less than 15 pages, and 25 pages is not an absolute limit but should give you an idea of the depth of the analysis of your company that I expect.The objective of the case is to develop a financial assessment of the firm based on your analysis. Your primary source should be the financial statements and other information provided by the company in its latest 10-K, but you should also look at other materials such as analysts’ reports for additional information and to support your conclusions. To introduce the company, first provide a description of your firm (company), what they do, and your initial assessment of their financial condition. You should identify your firm’s competitors, and compare your firm to its competitors, to its industry and the market as a whole. That is, after reading your paper, the reader should understand the finance strengths and weaknesses of your firm relative to their industry. Provide your assessment of the financial performance of your firm, an assessment of the overall financial risk, and a discussion of the firm’s strategy from a financial standpoint. As you answer the case questions, explain the meaning of the data and support your explanation and interpretation of the data with your analysis. Your analysis and your interpretation of the data is the most important part of this case. After a brief (1-2 paragraph) introduction to your firm that includes background information, type of business, and a discussion of management, answer the questions that follow. After thoroughly answering each question, conclude your report with a brief (1-2 paragraph) overall assessment of your firm’s financial condition. Comment on whether Management’s Discussion & Analysis in Form 10-K addresses any of the issues that you raised in your analysis, and whether is alleviates any of your concerns.

Questions to be answered

1. Corporate Financial Statements

(What form of business does your firm use (for-profit, not-for-profit, governmental)?

(Look at the Report of Independent Registered Public Accounting Firm. According to the auditor, are your firm’s financial statements prepared in accordance with GAAP?

(Identify the members of the Board of Directors who make up the audit committee? Identify the “inside” directors (if any) on the audit committee.(What form of income statement does your firm use?

2. Accrual Accounting

(Look at the Notes to the Financial Statements. Are there any notes referencing significant accounting policies that represent examples of deferred revenues, accrued revenues, deferred expenses or accrued expenses? Explain.

(What are the revenue recognition policies of your firm as explained in the Notes?

(Look at your firm’s statement of cash flows. For the last three years, what was the cash flow from operations for each year? What were the major differences between cash flow from operations and net income? What were the primary non-operating sources and uses of cash?

3. Risk1.

· What are the significant areas of risk disclosed in the financial statements?

· What risks are of concerns to analysts in determining bond ratings?

· Based on your analysis of the financial statements, what other areas of risk should be of concern to a potential investor?

· What measures, if any, are used to assess risk by the company? For example, significant adverse events are generally concerning to hospital managers. Are these increasing or decreasing?