Accounting 2001 – Assignment – Examination of Corporate Annual Report

Accounting 2001 – Introduction to Financial Accounting

Assignment – Examination of Corporate Annual Report

Any corporation is accepted.

Name of Corporation: ____________________________________

Year-end date: ____________________________________

Exchange where common stock is traded: ____________________________________

Most recent price of common stock (*): ____________________________________

Latest annual dividend on common stock: ____________________________________

Why did you choose this particular Company?

(*) – See Wall Street Journal or a on-line portal (example: GOOGLE / YAHOO) highlight the stock quote, and attach page.

1} Read the business summaries and management’s discussion and analysis.

Summarize the remarks (e.g. poor operating results / reasons, expansions / sale of divisions).

2} What kind of products and / or services does the corporation provide?

3} Which certified public accounting firm examined the financial statements?

Did the auditor’s report indicate any problems or was the report “unqualified”?

4} There are a number of ratios and computations listed on the following two pages. Which ratios or computations would be most important to?

Stockholders and prospective investors: _____________________________

Creditors and prospective creditors: ______________________________

Management and the Board of Directors ______________________________

For each of the three groups state why:

COMPUTE THE TEN ITEMS INDICATED BELOW. WHERE DATA IS INSUFFICIENT INDICATED WHAT IS LACKING. SHOW ALL CALCULATIONS AND FORMULA USED. ALL CALCULATIONS SHOULD BE ROUNDED TO THE MOST SIGNIFICANT DIGITS.

1}Working Capital

2)Current Ratio

3}Quick Ratio

4}Gross Profit (Margin) Ratio

5}Profit Margin Ratio

6}Return on Equity

7}Earnings Per Share

8}Debt To Equity Ratio

9}Dividend Yield

10}Price / Earnings Ratio(use current price)