Find an annual report of a publicly traded corporation on the Internet. The selection of the company is up to your preferences, but the annual report must be available on-line and you must use the most recent one.
Referring to the Annual Report and supplemented by your research, respond to the instructions and questions below. Fully explain your answers by detailed explanation or calculations where necessary and appropriate. All questions and instructions refer to the most recent year reported, unless otherwise stated:
- Provide an overview of the company, the type of business it engages in, and any significant recent events affecting the company’s operations or financial position.
- How many shares of common stock did the company have outstanding?
- Does the company have any preferred stock outstanding?
- What is the nominal value, book value, market value per share of common stock?
- What is the company’s total paid-in capital?
- Compute net working capital and comment on the result.
- Compare net income and cash flow and comment on your findings.
- Prepare common-size income statement and balance sheet and comment on the structure of assets, liabilities and stockholder equity.
- Compute all profitability, asset management, liquidity and financial leverage ratios. Evaluate and comment on your findings. Make sure you compare company’s results with either industry average or its main competitor.
- Estimate the internal and the sustainable growth rates and explain the results.
- Based on all your analysis, what weaknesses, if any, do you see in the financial status, operating performance, or cash position of the company, and what steps would you recommend for improvement?
You will be graded on the professional presentation as well as the completeness of your paper. This includes proper internal source citation and bibliography format using the recommended guide.
Support your discussion, opinions, and conclusions fully. Remember that evaluation requires some comment and analysis, not just a computation of the ratios. At a minimum, you are expected to use the ratios presented in your text. Be sure to show all computations. You should also use the same formulas for the ratios used by the author of the text, unless you explain why you are using a different version of the ratio.
One of the objectives of this assignment is to give you some exposure to actual financial statements, such as those that you might encounter in a business setting. In many cases, actual financial statements may contain terminology, or non-typical items that are not covered in the textbook. You are encouraged to research other sources and do some additional reading to learn about any unusual items you may see.
Grading Criteria for Case Studies
|Accuracy of calculations||35%|
|Clarity and completeness of responses|
Your case study should include at least one figure, prepared by you; otherwise your grade will decrease by 20%.
|Demonstrated understanding of relevant course concepts||10%|
|Logically supported conclusions||10%|
|Professional presentation (including language and format)||15%|
City University of Seattle expects each student to do his/her own work. The University has “zero tolerance” for cheating, plagiarism, unauthorized collaboration on assignments and papers, using “notes” during exams, submitting someone else’s work as one’s own, submitting work previously submitted for another course, or facilitating acts of academic dishonesty by others. Scholastic Honesty policy applies also to online discussions that represent a part of assignments in online courses. Every reference material used in discussion contributions must be cited according to the current Research & APA Style Guide. The penalties are severe! A first offense results in a zero grade for the course; a second offense can result in a zero grade for the course and suspension for one or more quarters; a third offense can result in expulsion from the University. The Policy and Procedures may be found at http://www.vsm.sk/en/students/scholastic-honesty/policies-and-procedures/.
In addition to providing your work to the instructor for grading, you must also submit an electronic copy for the City University of Seattle archives (unless the work is specifically exempted by the instructor). You will not receive a grade for particular work until and unless you submit this electronic copy. The procedure for submitting work to the archives is to upload it via the website http://www.vsm.sk/en/students/on-line-center/uploader/uploader.html . Files should include the cover page of the work with the student name, instructor name, course name and number, and date. File names should indicate the type of assignment, such as “researchpaper.doc”, “casestudy.doc” or “ thesis.doc” (student name should not be a part of the file name because the system adds it). All files received into the archives are submitted to www.TurnItIn.com for plagiarism checking.