ACG 2011 – PROJECT
PROFILING A CORPORATION
Select a public corporation (traded on a U.S. stock exchange) with which you are
familiar or which interests you. Using the corporation’s most recent annual report and
the Internet, develop a report about the corporation. The purpose of the report is to
provide the CFO/CEO of your company with information on which to base a decision as
to whether the company you are reviewing is a good investment for the company you
work with. Include in your profile (in report format) the data that responds to the
following questions about the company being analyzed:
1.
2.
3.
4.
Name of corporation and location of headquarters
Nature of their operation and industry classification
What is the date of the fiscal year end?
On which stock exchange is the company actively traded? What is the stock
symbol?
5. Description of primary source of revenue (what does it sell, manufacture or what
services are provided?).
6. Total assets reported on the most recent balance sheet.
7. Total cash and cash equivalents reported on the most recent financial
statements. What was the change from the previous year?
8. What is the corporation’s Current Ratio. Is it good or bad, in your opinion?
9. Total revenues for the most recent income statement.
10. Total operating expenses for the most recent income statement.
11. Net income (loss) reported for the most recent income statement. What was the
% increase/(decrease) in income from the previous year?
12. What is the amount of Retained Earnings at the end of the year?
13. Are there any contingencies reported in financial statements or in the notes to
the financial statements? If so, what are they?
14. What inventory method does the firm use?
15. What depreciation method does the firm use?
16. How many shares of common stock were authorized, issued, outstanding at
the end of the current year? (provide all three amounts)
17. Does the firm have Preferred stock? If so, are they cumulative? How many are
authorized, issued and outstanding at the end of the current year?
18. Does the firm have Treasury stock? If so, how many shares and at what cost?
19. What is the earnings per share of common stock reported on the financial
statements.
20. What was the closing market price of the stock on the Friday before this
report is due?
21. Report the High and Low prices of the stock for the past 12 months.
22. Did the firm declare or pay any dividends during the year? Report any
dividends paid for each share of stock during the past year.
23. Report the total cash flows for each of Operating, Investing and Financing
activities.
24. Did the firm have bonds and/or other long term debt reported on their balance
sheet? If so, how much?
25. Did the firm have any investments? If so what kind(s) and which were
categorized as long term and which were shown as short term investments?
Principles II (ACG2011)
Corporate Profile Project
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ACG 2011 – PROJECT
PROFILING A CORPORATION
26. If the firm had stock investments, report amounts for Trading, Available for Sale
and Held to Maturity securities.
27. Were there any investments that were recorded using the equity method? If so,
in which companies were these investments held?
28. Find and read the auditor’s report in the annual report. State the name of the
auditors.
29. Did the firm comply with the Sarbanes Oxley Act? If so, how did you determine
their compliance?
30. Read the letter from the CEO or chairman of the board. Summarize his opinion
about the current year’s results and the company’s future plans.
31. Find and read at least one recent news article (within the last six months) about
your company. Summarize the important points from the article in the body
of your report (1 paragraph) – attach the original article to your paper.
NOTE: An article that reports on annual earnings or annual dividend will NOT be
sufficient
32. Comment on why you selected that company and, assuming you have $10,000
to invest, if you would/would not invest in that company. Provide reasons why
you would or why you would not invest in the company, based on facts provided
from the annual report or from your reading. (1 paragraph)
ALL these questions must be answered in the body of the
report. Even if the question asked does not apply to the
company you are analyzing - you must indicate this in the
report.
YOU MUST WRITE A REPORT!
DO NOT JUST LIST THE ANSWERS TO THE QUESTIONS!
Principles II (ACG2011)
Corporate Profile Project
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ACG 2011 – PROJECT
PROFILING A CORPORATION
REPORT GUIDELINES
Content
Was assignment provided by assigned due date?
Is Annual Report included with final submission?
Is the summarized article included in submission?
Are ALL required questions answered accurately in the report?
(NOTE: Even if the question is “not applicable” to your
company you must still indicate that in your report.)
Does the report contain the following sections;
• Cover Page
• Introduction (1 paragraph)
▪ Reason for report
▪ Company name, location, fiscal year, stock
exchange, ticker symbol, industry classification
• Analysis (2 – 3 paragraphs)
▪ Responses to data requested from the financial
statements and/or Notes to the financials
▪ Chairman’s opinion of company’s future.
▪ Summary of current article
▪ LOGICAL GROUPING of information – (i.e. not
just answering the questions in the order asked.)
• Conclusion (1 paragraph)
▪ Would you invest $10,000? Must include
WHY/WHY NOT.
▪ Your decision must be fact-based and supported by
reasons based on information from the Annual
Report, as well as personal opinions.
Format
Is the project in the form of a report
• Complete sentences, paragraphs - Reads like a report
• Use of proper business language
• Proper format of numbers and currency
• Approximately 2 ½ pages (double-spaced)
Form
Presentation, grammar, punctuation, spelling & “Readability”
BILIOGRAPHY
Links provided to THE ANNUAL REPORT BEING ANALYZED
and the Article reviewed.
Principles II (ACG2011)
Corporate Profile Project
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