Follow the Description of the Assignment, its in the Order Instructions
You need to select a company of your choice (preferably trading company) and conduct an analysis of that company. For this purpose, you need to access the companyas website, download its most recent Annual Report and use it to answer the following questions:
1) What are the main business activities of the selected company?
2) Examine its Balance Sheet. Make a list of different accounts of Assets, distinguishing between Current and Non-Current (Tangible and Intangible), and Liabilities, distinguishing between Current and Long-Term Liabilities.
3) What disclosures can you find in Annual Report? Locate the notes to the financial statements and identify the information topics disclosed in these footnotes.
4) Calculate the gross profit percentage for each of the years shown in the companyas income statements. Evaluate the companyas trend in sales and gross profit. By what percentage amounts did net sales increase or decrease in each of the years reported?
5) Does the company report any investments in marketable securities? If so, how does it report unrealized gains and losses?
6) At what point does the company recognize and record revenue from its customers? On average, for how many days do the companyas accounts receivable remain outstanding before collection? What is the companyas allowance for uncollectible accounts (bad debts) for the current year reported?
7) What inventory system does the company uses? What inventory evaluation method is used by the company? What is the amount of inventory reported in the current year? How often does the company take a physical count of inventory? Compute the inventory turnover for the years reported.
8) What depreciation method does the company use for different categories of tangible assets?
9) Does the company have any research and developments (R&D) expenditures? How does the company account for them (i.e. R&D costs are capitalized or charged to expense)?
10) What is the nature of companyas liabilities? If the company has any long-term loans, for how many years they are taken, and what percentage of interest the company pays on them? Does the company have any contingencies? Compute the companyas current ratio and debt ratio for the years reported. Do these ratios provide support that the company is able to repay its current liabilities as they come due?
11) Using information from financial statements, evaluate the companyas profitability and liquidity.
Hint: To answer the questions, use the footnotes to the financial statements.
You are required to prepare the report based on the results of your analysis of tasks 1-11 from above. The length of the report should be about 3-6 pages.
The studentas work will be assessed by analytical abilities, understanding of implications of accounting and business, deepness of analysis, logic of statements, solid judgments, and justifications of conclusions.
Estimated time to conduct analysis: 4-5 hours
Estimated time to prepare the report: 2-3 hours
The report should be submitted to the professor via Moodle
The file (MS Word document) should be named as Name_Surname_Company
*** Please let me know once you chose the company that you would work on, because some company had been already taken
*** the Assignment has to be given in 3 days , May 8th