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Project Template 2_IND_Fall 2022

This document is a template for an individual course project assignment focused on analyzing a company's financial statements and stock price. It includes sections for gathering basic company data, understanding financial statements related to inventories, accounts receivable, long-lived assets, liabilities, and stockholders' equity, as well as discussing a relevant news article and tracking stock prices. The assignment requires students to use the company's most recent SEC Form 10-K and perform various financial calculations and analyses.

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7 views

Project Template 2_IND_Fall 2022

This document is a template for an individual course project assignment focused on analyzing a company's financial statements and stock price. It includes sections for gathering basic company data, understanding financial statements related to inventories, accounts receivable, long-lived assets, liabilities, and stockholders' equity, as well as discussing a relevant news article and tracking stock prices. The assignment requires students to use the company's most recent SEC Form 10-K and perform various financial calculations and analyses.

Uploaded by

ab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Template for Course Project Assignment #2-INDIVIDUALdue 12/11/22

Learning about yourCompany, its Financial Statements& tracking its Stock Price
Your Other Section
name teammember(s) #

Again, use your Company’s most recent SEC Form 10-Kto answer the questions below in the space
provided. [Hints: 1. Enter the numerical data (e.g., total assets) in Project Spreadsheet Exhibit B
(available on Blackboard); build formulae to calculate ratios (e.g., inventory turnover); and transfer the
required information to this template. 2. Some itemsrequested below may not be where you expect to
find them in the 10-K. If you cannot find an item, type in what you are looking for (e.g., “preferred
stock”) into the upper right hand search window in the 10-K pdf file.]

Part 1: Basic data on your company

Company name
Industry name

Part 2: Understanding the financial statements(continued from Assignment #1-IND)

Part 2A: Inventories

Using your Company’s financial statements and double-clicking on the following table, answer
the questions below:

Most recent year


Insert numbers and compute financial ratios available 1st Prior Year
Does the Company report Inventories on the
balance sheet? (Yes or No)
Do they appear to be manufacturing, retail or some
other inventory accounts?
What is the dollar amount of total inventories at
yearend?
What is the major inventory method (cost-flow
assumption), e.g., FIFO, LIFO, weighted-average?
If they use LIFO, what would have been the ending
balance under FIFO?
Compute inventory turnover for the most recent
year. [Inventory turnover = CGS ÷ Average na
Inventory] -- see textbook p. 6-17
Compute days in inventory for the most recent
year. [Days in inventory = 365 ÷ inventory na
turnover ratio] -- see textbook p. 6-17

Part 2B: Accounts Receivable


Robert Bowen and Jane Jollineau of the University of San Diego prepared this template. Revised: 07/30/19.
Acct 201 Course Project Assignment #2-IND for [insert company name] page 2

Using your Company’s financial statements and double-clicking on the following table, answer
the questions below:

Most recent year


Insert numbers and compute financial ratios available 1st Prior Year
Does the Company report Accounts Receivable?
(Yes or No)
What is the dollar amount of Accounts Receivable
net of Allowance for Doubtful Accounts at
yearend?
What is the balance in Allowance for Doubtful
Accounts at yearend? (this account may have a
different name[1])
What is the balance in accounts receivable, gross, at
yearend? [= Accounts Receivable, net plus
Allowance for Doubtful Accounts]

Compute the % of gross Accounts Receivable that


management expects to be uncollectible at yearend
[= Allowance for DA ÷ Accounts Receivable, gross]

Compute Accounts Receivable Turnover for the


most recent year. [= Net Sales ÷ Ave net A/R] – see na
textbook p. 8-22

Compute Accounts Receivable Collection Period in


days for the most recent year. [= 365 ÷ Accounts na
Receivable Turnover ratio] – see textbook p. 8-22

Part 2C: Long-lived assets


Acct 201 Course Project Assignment #2-IND for [insert company name] page 3

Using your Company’s financial statements and double-clicking on the following table, answer
the questions below:

Most recent year


Insert numbers and compute financial ratios 1st Prior Year
available
Does the Company report fixed assets (e.g.,
property, plant & equipment) on its balance sheet?
(Yes or No)
What is the balance in Property, Plant &
Equipment, net, at yearend?
What depreciation method is used (e.g., straight-
line)?
What is the balance in Accumulated Depreciation at
yearend? (see the notes to the financial
statements)
What is the original cost of the Property, Plant and
Equipment at yearend?
Compute yearend Accumulated Depreciation ÷ the
yearend original cost of PP&E
Does the Company report any intangible assets
(e.g., Goodwill) on its balance sheet? (Yes or No)
Compute the ratio of intangible assets to total
assets. [= yearend intangible assets ÷ yearend total
assets]
Compute Asset Turnover [= net sales ÷ average total
na
assets] – see textbook p. 9-24
Acct 201 Course Project Assignment #2-IND for [insert company name] page 4

Part 2D: Liabilities


Using your Company’s financial statements and double-clicking on the following table, answer
the questions below:

Most recent year


Insert numbers and compute financial ratios 1st Prior Year
available
What is the Company’s largest current liability at
yearend?
Does the Company report unearned (or deferred)
revenue? (Yes or No)
What is the total dollar amount of noncurrent
liabilities at yearend?
Compute the debt to total assets ratio [= yearend
total liabilities ÷ yearend total assets] – see
textbook p. 10-21

Compute times interest earned [= net operating


income ÷ interest expense] – see textbook p. 10-21
Acct 201 Course Project Assignment #2-IND for [insert company name] page 5

Part 2E: Stockholders’ Equity

Using your Company’s financial statements and double-clicking on the following table, answer
the questions below:

Most recent year


Insert numbers and compute financial ratios 1st Prior Year
available
Does the Company report any preferred stock?
(Yes or No)
How many common shares are authorized at
yearend?

How many common shares are issued at yearend?

What is the total dollar amount of total paid-in-


capital at yearend? (C/S at par + addt'l paid-in-
capital)
What is the average cost of shares issued at
yearend? [= (C/S at par + addt’l paid-in-capital)[1] ÷
yearend shares issued]
Does the Company report any treasury stock on the
balance sheet? If so, how many shares are held as
treasury stock?
How many common shares are outstanding at
yearend?
What is the average cost of treasury shares at
yearend (if reported)?
How much did the Company pay in dividends
during the year (if any)? (Hint: see the statement of
cash flows.)
Compute the Dividend Payout ratio [= cash
dividends declared on C/S ÷ net income] – see
textbook p. 11-26
Compute Return on Assets [= net income ÷ average
n/a
total assets] – see textbook p. 9-24
Compute Return on Common Equity [= (net income
– preferred stock dividends) ÷ average total
n/a
(common) shareholders’ equity] – see textbook p.
11-27
Acct 201 Course Project Assignment #2-IND for [insert company name] page 6

Part 2F: Insert your company’s financial statements here – this should fit on 4 or 5 pages

Include high-quality copies of the following financial statements from the Company’s 10-K – not
abbreviated versions from Finance Yahoo or Google Finance. These should be the same statements you
submitted with your first assignment.

 Balance sheet (may be on two pages)


 Income statement
 Statement of Cash Flows
 Statement of Changes in Stockholders’ Equity
Acct 201 Course Project Assignment #2-IND for [insert company name] page 7

Part 3: Discussion of a news article about the Company

Insert your second article discussion for this company here – this should fit on one page. (You turned in
the first article with Assignment #1.) Again, please use a news article rather than an opinion piece from
a blog such as Seeking Alpha. Motley Fool is okay to use.

Description of Article discussion (same as in Assignment #1-IND but with a different article)

Include one article summary for your company. The article should be dated no earlier than October 1,
2018. Summarize the article and its impact on your company or the industry (and perhaps the
company’s stock price). Yourarticle summary should include the following (at a minimum):

Citation: Title of article, author, source (e.g., WSJ, 10/1/19, p. B2), and link to article if possible
How: How does the article relate to the Company or to the industry?
Why: Your summary of the article should highlight key points that relate to the company or
the industry and hopefully to accounting
Effect: For example, did the stock price change after the event(s) described in the article?

Do NOT copy and paste from the article. Use your own words.
Acct 201 Course Project Assignment #2-IND for [insert company name] page 8

Part 4: Tracking your Company’s stock price

You are tracking your company’s stock price from 10/3/22 through 12/4/22. This final submission
should have a completed worksheet. [Complete your Stock Monitoring Worksheet by “selling” your
stock as of the closing on May 1st as shown below. For the actual Excel template, see Blackboard/Course
Project/Project Spreadsheet/Exhibit A. “Exhibit A with notes” explains how to enter the data. Use
“Exhibit A – blank” to enter your company’s data. Paste a screenshot of your completed spreadsheet
here.]

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