ACCOUNTING-Annual Report Team Assignment Nancy A. Herring, PhD, CPA

Annual Report Team Assignment
Nancy A. Herring, PhD, CPA

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Annual Report Team Assignment
To the Student
The
Annual Report Project (ARP) provides you the opportunity to analyze a corporate
annual report. You will obtain the annual report of a Fortune 500 company and
answer questions regarding the application of concepts studied in your
financial accounting course.

The
Annual Report Project:
·
Will increase your interest
in financial accounting by allowing your group to choose the annual report you
will review
·
Provides hands-on exposure
to financial statements of real-world companies
·
Emphasizes the importance
of the notes to the financial statements
·
Provides an opportunity to
examine the application of procedures and methods discussed in your accounting
textbook
·
Encourages you to work with
spreadsheets

The
Annual Report Project consists of five assignments and is designed to be a
useful supplement for undergraduate financial accounting courses. The following
is a list of the topics covered in each Annual Report Project assignment:

·
ARP 1 Obtaining the Annual
Report
·
ARP 2 Company Information
·
ARP 3 Overview of the
Annual Report
·
ARP 4 The Balance Sheet
·
ARP 5 The Income Statement

Each Group Member
Will:
1. Submit a fully completed 12 page Annual
Report document.
2. Attach a copy of the complete company
annual report; a schedule 10-K is not acceptable.
3. Attach a copy of the article reviewed
in Assignment 2
4. Submit the Peer Evaluation form

ARP –
ASSIGNMENT 4 Completed
by ___________________

THE BALANCE SHEET

Name
of company chosen: _______________________________________

THEBASICS
Locate the company’s balance sheet. Balance sheet date: __________________

Page
on which balance sheet appears: _________

1. The accounting equation is Assets = Liabilities + Stockholders’
Equity. Replacing the words in the accounting equation with dollar amounts;
give the company’s accounting equation at the end of the current and prior
years.

Assets = Liabilities +
Equity
This
year _______________ =______________ +_______________

Last
year _______________ =______________ +_______________

2. Calculate the company’s current ratio for both this year and
the prior year.
Show your computations.

This
year: = ___________________ =

Last
year: = ___________________ =

Explain
what information this ratio provides. (Hint: See the Financial Statement
Analysis chapter of your textbook.)Use complete
sentences.

Has
the current ratio improved or worsened? Explain.Use complete
sentences.

Calculate the company’s debt to total assets ratio (also called
total debt to equity) for both this year and the prior year.Show your computations.

This
year: = ___________________ =

Last
year: = ___________________ =

Explain
what information this ratio provides.Use complete
sentences.

Has
the ratio improved or worsened? Explain.Use complete sentences.

3. Compare these ratios to industry averages.
Use the ratios you printed in Assignment 3.

Your company Industry
Current
ratio
____________ __________

Debt
to equity ratio
____________
__________

How
do the results for your company compare to industry averages?

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