24 April, 2024
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The purpose of this assignment is exposure to a ‘real’ financial statement annual report for a stockmarket based popular company (see semester company list). The following learning outcomes will be
assessed:
Please note that Competency 6 is the peak competency. Competency 1 to 5 are building blocks for
competency 6. This post test therefore is cumulative in nature.
C1: Identify accounting, accounting standards, and objectives of financial and managerial accounting.
C2: Identify and differentiate between the four basic financial statements, purposes and elements.
C3: Describe an effective accounting information system and management’s role.
C4: Analyze cost behaviors using various financial analysis.
C5: Identify, construct, and appraise budgets for effective management.
C6: Analyze financial statements to evaluate operations and performance.
Instructions:
- Review 12 company’s financial information and decide on 1 company to process financial statement
briefing and analysis. Each individual in class must conduct research a different company. No overlaps
are allowed. Once you decide on a company, then message me and declare your company. The first
person who selects and I confirm with, then the company is granted and the company is taken off as an
option.
You will need to conduct research to locate the company’s financial statements and/or annual reports.
For example: Amazon investor link: https://ir.aboutamazon.com/investor-relations?c=97664&p=irolirhome Once you are in this website, which is the Amazon website, scroll down to investor’s relations
(left hand side) and pull up the Annual Reports. You will conduct research on the latest annual report.
For example, this Summer school course will conduct research on 2022, since there is a full set of
financial statements.
Amazon is only an example and will not be used for research. If I provide you the link, you must search
for the annual financial statement link yourself. Just remember, you need to access the latest annual
report.
Also there is a link to library services and you have excellent resources from librarians.
I have provided some sites for you. If they are not included, then you will need to search for them.
Lowe’s: https://lowes.gcs-web.com/
Toyota Motor Corporation: https://www.sec.gov/Archives/edgar/data/1094517/000119312516630645/
d19734d20f.htm (latest annual report is 2022)
General Motors: https://investor.gm.com/investor-relations or
https://investor.gm.com/sec-filings?field_nir_sec_form_group_target_id%5B
%5D=471&field_nir_sec_date_filed_value=2018#views-exposed-form-widget-sec-filings-table
Spirit Airlines: http://ir.spirit.com/FinancialDocs
Southwest Airlines: http://www.southwestairlinesinvestorrelations.com/news-and-events/newsreleases/2019/01-24-2019-113106440
WalMart: (conduct research on 2021 – not 2022)
https://s2.q4cdn.com/056532643/files/doc_financials/2018/annual/WMT-2019_Annual-Report.pdf
Fedex: http://investors.fedex.com/financial-information/annual-reports/default.aspx
ExxonMobil: https://corporate.exxonmobil.com/en/investors/annual-report
General Electric: https://www.ge.com/investor-relations/annual-report
Johnson and Johnson: https://www.jnj.com/about-jnj/annual-reports
Caterpillar: https://www.caterpillar.com/en/investors/reports.html
Anheuser-Busch Company: https://www.ab-inbev.com/investors.html
Or find required financial report filings at the Security Exchange Commission:
https://www.sec.gov/edgar/searchedgar/companysearch.html
Again, communication must be made to the instructor on #1 preferred company and a secondary
preferred company. Instructor will give a formal approval based on the number of request, to each
individual. Individuals are encouraged to immediately notify instructor so that preferred company is
granted.
Make sure to obtain an approval through the message center, prior to beginning work. - Download and read, in detail, at least 3 financial documents provided relating to selected company.
The required readings and research are as follows: latest annual report or 10-K filing, annual letter to
shareholders and management’s discussion and analysis. Students may research more documents than
mentioned; however, the student must research the noted document listed above, at minimum. You will
find other documents very helpful such as financial highlights. While you are not required to research
this document, it will be very helpful in summarizing financial outcomes. - Write a comprehensive report containing with the following elements: (If report is partially
completed, the report will not be accepted. You must have all parts completed before I will grade your
report. Remember this is a comprehensive report and must be summited as a whole.
a. Declared Company – Write 1-3 pages about the company and its direction from a financial
standpoint (This is based on combination of narrative and quantitative measurements in the
annual report.) (Measures C6)
i. It is suggested to write this section after researching items b-i below.
b. Discuss the users of the annual report. Describe how users can utilize the information. The
suggested length be ½ – 1 page. (Measures C1-C2)
c. Identify the main financial statements in the annual report and describe the basic financial
statement elements. Discuss if the financial statements follow GAAP and how can a user identify
if it is compliance with GAAP. The suggested length be 1 to 1 ½ page. (Measures C2)
d. Discuss accounting information system related to internal control systems. Based on SarbanesOxely Act, internal controls must be discussed and therefore, report contains these topics. The
suggested length should be 1 page. (Measures C3)
e. Risk Factors – Summarize 5 of the numerous risk factors stated in the report. Risk factors are
standard requirement of each company’s report. Discuss risks’ impact on company and
management. The suggested length be 1 – 1 ½ page. (Measures C4-C6)
f. The annual report information should discuss budget outcomes. Discuss budget results and
management’s reflection and//or action of budget outcomes. The suggested length be ½ – 1 page.
(Measures C4-C5)
g. Create a vertical analysis for the most recent year for one major financial statements
(consolidated) (Measures C6)
h. Create a horizontal analysis for the most recent year and immediate prior year for one major
financial statements (consolidated) (measures C4 & C6)
i. There are various categories of financial ratios discussed in this course. For each category
Profitability, Solvency, Efficiencies, and Liquidity ratios, calculate at least 2 ratios (per
category), utilizing the financial statements contained in the annual report. Show the formula
and the result. Discuss the results and its meaning. The student may integrate information in the
report that explains ratio analysis and outcome - The report must be in one document. Final report should be submitted here. Piecemeal reports will
not be accepted and will automatically receive a 0. Citations and citation page are required, if
applicable.
Report deliverables specifications:
Times New Roman font
size 12
doubled space
moderate margin.
Citation page is required.
Please review the provided rubric for grading criteria.
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