ACCT 101 Principles of Accounting I – Project

Questions to be answered for your Company – 50 total points

NOTE:  Include your answers exactly as they appear on the financial statements.  If they are stated in millions/thousands, do not add zeros.

Base points – Obtained all the information, submitted in a professional organized table format. Attach your completed project to an email and send to your instructor before the deadline.  Also, be sure you have included the URL to the Annual Report within Discussion Board as instructed early in the semester. – (5)

1. For the most recent year provide the following: (10)
   • Current assets
   • Current liabilities
   • Working capital
   • Current ratio
   • Accounts receivable Turnover
   • Average number of days to collect accounts receivable
   • Inventory Turnover
   • Average number of days to sell inventory
   • Number of days in the cash-to-cash operating cycle
   • Based on this information evaluate the company’s short-term liquidity?

1. For the most recent year provide the following: (6)

• Total assets
• Total liabilities
• Total Shareholders Equity
• Debt Ratio (calculation) – (Total liabilities/total assets = _ %)
• Equity Ratio (calculation) – (Total stockholders’ equity/total assets = _ %)
• Discuss briefly whether you think the company is heavily leveraged (Debt)?

1. For the most recent year provide the following: (8)

• Gross profit
• Gross profit ratio, rounded to one tenth of one percent
• Net income/loss
• Profit margin ratio, rounded to one tenth of one percent
• Earnings per share
• Net cash provided by operating activities
• What makes net earnings and net cash provided by operating activities different?
• Based on this information evaluate the company’s profitability?

1. Provide the per share market price of the company’s common stock on the following dates: (4) (It may be best to perform an internet search)

• End of two most recent fiscal years (which would be the Balance sheet dates)
• Current stock price (the date you complete the project)
• What is the trend in the company’s stock price?
• What factors might be affecting the stock price?

1. Provide the following from the Report of Independent Accountants: (2)

• What firm audited the annual financial report?
• Is the audit report unqualified?

1. From the Notes to Financial Statements provide the following: (4)

• What method of inventory valuation does the company use (LIFO, FIFO, etc.)?
• What depreciation method does the company use?
• Describe one significant commitments or contingencies?

1. Read Managements’ Discussion and Analysis of Financial Condition and Results of Operations? (5)

• Provide five management appraisal points of the most recent results of operations?

1. Based on all of the above information and analysis, would you consider investing in this company (why or why not)?  Back your opinion with specific data from your analysis.  Compare strengths and weaknesses of your company. Within this requirement, an introduction and conclusion should be provided.  Do not just list the strengths and weaknesses. (6).