10-K report analysis project. Directions in the attached file for only part 2. Need by Saturday.
Project
1
& 2 Instructions, ACCT 2200, SP13
Obtain the most recent 10-K for one of the following companies:
Molson Coors Brewing Company: TAP
Red Robin Gourmet Burgers: RRGB
1
You can obtain the 10-K by going to
http://finance
.
yahoo.com and searching for your company. Put the ticker symbol above in the search box. Once you find your company, click the “SEC filings” link on the left and you will see all filings listed. The most recent 10-K will have been filed during 2012 or 2013, depending on when you start the project. If you start after the end of February, the 10-K will be at the top of the list and will have a date of Feb 2012. (DO NOT USE A 10-Q) Click “Full Filing at EDGAR online.” Once you are taken to the Table of Contents, click on any subtitle. Once inside the document, click “View Entire Filing” in the upper right hand corner and you will be able to see the entire 10-K. (Note: it will ask you to “purchase” for certain document types, but you do not need to do this! Follow my instructions and you will be able to obtain the document for free.) You do not need to print the entire document but you will need the Management Discussion & Analysis, the Financial statements, and the Notes to the financial statements. You will also use the company website to obtain information for the project. (Scroll down to see screenshots of the SEC filing page.)
You must use the same 10-K document and company for Project 1 & 2. If you use the 2012 document for part I, use the 2012 document for part II and vice versa. Do not use 2012 for part I and then use 2013 for part II.
Your project must be typed using 1.5 spacing and a font of 12 or smaller.
Be sure to cite any and all outside resources used including the 10-K, financial websites, etc. Footnoting is an effective method of citation and looks very nice. I prefer you use footnotes for citations.
I do grade for spelling, grammar, punctuation, etc. so if these are not your strong points, you may want to consider going to the Learning Resource Center for assistance. Their information is available under the Free Tutoring announcement on the homepage.
The assignment begins below the screenshots below! You will see 2 parts of the assignment. Part I is due April 7th. Part II is due April 28th.
Project #1, ACCT 2200
1. Describe the history, development, and primary operations of the corporation. What do you find interesting about the company? Why did you choose this company over the other option? (Limit discussion on #1 to one page maximum).
2. What is the purpose of the section of the 10-K entitled “Management Discussion and Analysis”? Discuss this portion of the 10-K. What is interesting? What can you tell about the company and their management?
3. What is the name of the company’s Independent Auditing firm?
4. What is the purpose of the “Auditor’s Opinion”? What type of opinion did the auditors issue on the financial statements? Is it qualified or unqualified? What does this opinion mean? Discuss the opinion they issued and be sure to tell me if it is qualified or unqualified and what this means.
5. Did the company change auditors this year? If so, why?
6. Does the 10-K include the certification statement required by Sarbanes-Oxley? Who signed the certification statement and what are they certifying to? You need to research Sarbanes-Oxley and find the required statement. Discuss the certification! Do not just say, yes it is there and is signed by so and so. You need to talk about this statement and what it means.
7. What has been the lowest price of the common stock in the last year? What has been the highest price of the common stock in the last year? Include a one year historical graph of stock price – you can get this graph from yahoo finance.
8. What has been the trend in the stock price (upward, downward, volatile)? Does the change in stock price reflect current events? For example: election, economic stimulus discussions, earnings reports, bankruptcy, etc. What does the change in stock price relate to? Discussion required here.
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9. What is the current economic outlook for the industry in which this company operates?
10. What does the 10-K and/or company website say regarding ethic responsibility as a company? Do you think this is sufficient? Is the company doing their part to create an ethical workplace? Are they maintaining ethical practices?
Project #2, ACCT 2200
1. How many years of information does the Income Statement reveal? The Balance Sheet? The Statement of Cash Flows? Is the income statement presented using a single step or multi-step format? Does the company use the direct or indirect method to report cash from operations?
2. Has there been a growth in profits (Net Income) over prior years? Discuss and include the numbers. If so, why? If not, why not? A discussion is required here about the company income fluctuations.
3. What was the major source of cash outflows during the year? List the item and amount. What does this tell you about the company operations? Be careful here and make sure the number you are discussing is a CASH FLOW number. Remember, net income is accrual not cash. Depreciation is a non-cash number.
4. What was the major source of cash inflows during the year? List the item and amount. What does this tell you about the company operations?
5. What percentage of total assets consists of current assets? If they have a high or low number, why? Does management discuss this? What do you think about the current asset percentage?
6. Does the company think it will collect all of its accounts receivable? If not, what percentage of accounts receivable is expected to be uncollectible?
7. Does the company report any goodwill on the balance sheet? Any other intangibles? Discuss these assets. You will have to look in the notes to the financial statements to find details.
8. Did the amount of goodwill change from the prior year? If so, why?
9. Ratio analysis – calculate AND discuss the following ratios for the most recent two years. I am looking for quite a bit of discussion here. What do these ratios mean? What do the results tell you? You must include the numbers, calculations, and answer. All of these ratios can be found in Chapter 13 of the textbook and in the Chapter 13 lecture.
a. Current ratio
b. Quick ratio
c. Debt/asset ratio
d. Return on S/H Equity
e. P/E ratio
f. Days to collect
g. Receivables Turnover
h. Days to sell inventory
i. Inventory turnover
j. Asset turnover
k. Fixed Asset Turnover
l. Net Profit Margin
10. Select
several
key ratios/statistics and
compare the company to the industry average and a similar company. You can find this information by clicking on competitors in yahoo finance. In your comparison, discuss the different companies and their numbers. Again, I am looking for a discussion/analysis here of your own.
11. Discuss the importance of the three main financial statements, and the related Notes to the financial statements found in the 10-K, to the analysis you performed for the project. Limit discussion on #11 to one page maximum.
