ANNUAL REPORT PROJECT ASSIGNMENT 4 – 1 fill out these three pages for an assignment, need to complete all 3 pages for 3 different companiesANNUAL REPORT PROJECT ASSIGNMENT 4 – 1 company.
ANNUAL REPORT PROJECT – ASSIGNMENT 4 – 1
fill out these three pages for an assignment, need to complete all 3 pages for 3 different companies
ANNUAL REPORT PROJECT – ASSIGNMENT 4 – 1 company
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?
ANNUAL REPORT PROJECT – ASSIGNMENT 5 – 1 company
THE INCOME STATEMENT
Name of company chosen:________________________________________
Locate the company’s income statement.
What is the period covered by the income statement?_________________________
What is the page on which the income statement appears? ________
THEBASICS
1. Does the format of the statement more closely follow a single-step or a multiple-step format?________________________________________
How can you tell?
2. Calculate the following ratios for each of the three years presented.
Show your computations.
Current year Last year Two years ago
•Gross profit rate (%) ____________ ____________ ____________
•Ratio of operating ____________ ____________ ____________
expenses to sales (or operating revenue) (%)
•Profit margin (%) ____________ ____________ ____________
Net income/sales or operating revenues
•Return on assets ____________ ____________ ____________
Net income/average total assets
You will find prior years’ assets in the Five-Year Summary of Selected Financial Data.
3. Compare these ratios to industry averages.(Note: The gross profit rate may also be called the gross margin. The ratio of operating expenses to sales may also be called the operating margin. The profit margin percentage may also be called the net profit margin.)
Your company Industry
Gross profit rate ____________ __________
Operating margin ____________ __________
Profit margin ____________ __________
Return on assets ____________ __________
How do the results for your company compare to industry averages?
