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acct211_-_research_project.docx
ACCT211 - SPRING 2016
Research Project
Due 4/24/2016
This project provides you the opportunity to analyze a corporate annual report. You will obtain the annual report of a Fortune 500 company and answer questions regarding the application of concepts studied in your financial accounting course.
Objectives:
· Increase your interest in financial accounting by allowing you to personally choose the financial report you will review
· Provide hands-on exposure to financial statements of real-world companies
· Provide an opportunity to examine the application of procedures and methods discussed in your accounting textbook
· Encourage you to work with spreadsheets
Choosing a company
Choose companies in which you are interested. Perhaps the company has been featured in the news lately. Perhaps you own stock in the company. Perhaps you would like to own stock in the company. If you want to look at a list of possibilities, find a list of all Fortune 500 companies in www.fortune.com
You can obtain financial statements from the company website, yahoo finance, google finance or any other source of your choice.
To simplify this project, do not select a public utility, financial institution or brokerage firm, insurance company, co-operative or government entity.
Name of company chosen: _______________________________________________
1. Information about the company:
What is the industry classification for the company (according to the Internet site you are using)?
Describe the nature of the company’s business.
List the company’s primary products or services (use brand names where available).
What is the address of the company’s Web site?
List other countries in which the company operates:
What were the company’s revenues for the most recent fiscal year?
Who is the company’s CEO?
2. Provide the following market data:
On what stock exchange is the company’s stock traded?
What is the ticker symbol for the company?
What was the price of the company’s stock at the end of one day during this past week?
Price: _______________________ Date: ______________________
What were the lowest and highest stock prices during the past year?
52-week low: __________________ 52-week high: _________________
3. The accounting equation is Assets = Liabilities + Stockholders’ Equity. Replacing the words in the accounting equation with dollar amounts, give the company’s accounting equation at the end of the current and prior years.
Assets = Liabilities + Equity
This year _______________ = ______________ + _______________
Last year _______________ = ______________ + _______________
4. Calculate the company’s current ratio for both this year and the prior year.
This year:
Current assets = ___________________ =
Current liabilities
Last year: = ___________________ =
Explain what information this ratio provides. (Hint: See the Financial Statement Analysis chapter of your textbook.) Use complete sentences.
