Each team will select a different company to analyze its annual report.
There are six components to the project. Assignments # 4 & 5 culminate in both written and oral reports evaluating the financial strengths and weaknesses of the company.
While teams may divvy out various tasks, the entire team is responsible for the whole project. Given that, it is recommended that for quality control purposes, the team review work completed by individual members. Once the quantitative calculations are completed and the annual report is fully read, the team will need to fully discuss and contemplate conclusions together. This critical analysis should not be divided out individually; each team should plan to set aside time to discuss collectively. You may want to schedule a time to include your instructor in the conversation if the team is unable to arrive at a conclusion.
Set up the project using the Collaboration feature in Canvas so that the entire team can work collaboratively. Be sure to include your instructor as a participant. However, you will want to download your work as Excel and Word documents before submitting the various project components to your instructor.
Grading rubrics are provided at the end of this document. Be sure to review those as you work through the project. Even though the “team member” rubric is listed last, it applies to all aspects of the project so be sure to understand what is expected of you as a team member.
Part 1 Select Company
As a team, choose a publicly-traded company and obtain its annual report or 10K.
1. Select a publicly-traded company that you understand what it does – and that you are interested in. Generally, that is a company that makes and/or sells tangible products. Do not select a public utility, financial institution, brokerage firm, insurance company, cooperative, or government entity. “Summary annual reports” are not sufficient.
2. Order a hard copy of the annual report or 10K. These are free; however, allow time for it to be delivered through the mail. You may also print out the annual report/10K from an online source; however, that may require upwards of 100 sheets of paper. Ordering is the cheap alternative.
A useful resource is fortune.com. This site provides links to the websites of Fortune 500 companies. To obtain a printed copy of the annual report, contact the company’s Investor Relations department.
Part 2 Overview of Annual Report (25 pts)
Using your company’s annual report &/or 10K as well as internet sources, respond to the following. (Source: Annual Report Project by Nancy A. Herring, PhD, CPA)
1.What is the name of your company?
2.What is the industry classification for your company (according to Fortune or the Internet site you are using)?
3.On what stock exchange is the company’s stock traded?
4.What is the ticker symbol for the company?
5.What were the lowest and highest stock prices during the past year?
6.Describe the nature of the company’s business.
7.List the company’s primary products or services (use brand names where available).
8.What is the address of the company’s corporate headquarters?
9.What is the address of the company’s web site?
10.List the countries in which the company operates.
11.Who is the chairman of the company’s board of directors?
12.Who is the company’s CEO?
The annual report contains several sections. Identify the following page number each of the following items are found in your company’s annual report. (Although the page number is only requested here, you are strongly encouraged to read each of these sections as this time.)