accounting 1 home work

FSA 1: Obtain the income statement/statement of operations and balance sheet/statement of financial position from the annual report of the assigned company. Answer the following questions about the company. Concentrate on the most current year in the annual report that, except as directed for particular questions. Your analysis should not exceed one page.

1) How much in cash (which should include cash equivalents) did the company have at the end of the current year? At the end of the preceding year? Did cash increase or decrease during the current year? By how much?

2) What were total assets at the end of the current year? At the end of the preceding year?

3) Write the company’s accounting equation at the end of the current year by filling

in the dollar amounts: Assets = Liabilities + Owners’ (or Stockholders’) Equity.

To complete the above you may need to back into the Liabilities total since many companies only provide subtotals for Total Assets and Total Stockholder’s Equity.

4) Identify net sales revenue for the current year. The company may label this as Net

Sales, Sales, Net Revenue, or other title. How much was the corresponding revenue amount for the preceding year?

5) How much net income or net loss did the company experience for the current year, the

prior year?

6) Go to http://esearch.ut.edu and login using your UT email username and password. Go to one of the following: Business and Company Resource Center, Mergent Online, Standard & Poors or Value Line. Search for your US company then look for analysis of the company’s stock. Here you will search for analysis about your company prepared by professional analysts from large brokerage houses or these data companies (the Business and Company Resource Center has the largest variety of reports). Find a recent analysis of your company, these are usually one to seven page write-ups. Next, go to Morningstar (also on esearch) and read the Morningstar analysis on your company. Summarize in your own words your understanding of the outlook for your company in one paragraph. Cite the name of the analyst (if available), firm your analyst works for and date (which must be no less than one year old) of the research report on the stock, include both current and target stock price or, if no target price is stated whether the analyst rates the stock as “outperform”, “market perform”, “underperform”, buy, sell, hold or something else.

7) In one paragraph explain if you think that stock in this company is a good investment for

you personally. Assume you have $10,000 to invest, would you choose this company?