Acct202

ACCT 202 - Financial Statement Analysis Lab/Project – on campus Instructions: Part 1 – Getting the statements - see due date (10 points) 1. Work in your regularly assigned Groups or form new Teams (size 4-6 people). Submit ONE written report per group. The project lends itself to being divided up among group members, however the strength of the group is that you check each others’ calculations and writing. 2. Select two companies from the attached list in the same industry (Attachment A). First come, first served, confirm your selections with the instructor. You may NOT use JC Penney (as I use it for the example). 3. Obtain the most current 10-k Financial Statements for the companies: Download the statements into a document. You need three years of data (e.g., 2011, 2010, 2009), so you might need one additional statement. Be sure to ONLY get the most recent statements for the current and prior years. You may only use the official 10K statements, not any other source: www.sec.gov. For directions, see Attachment B with the example company JC Penney, which we will go over in more detail in the computer lab. Part 2 – Calculations - see due date - Use your discussion Board on MyBC to check each other’s your work! (30 points) Always use the most current years for ratios, horizontal and vertical analyses (even though the example is for previous years)! 4. Calculate ratios for the companies. The ratios should help you decide about the financial health of the company. Calculate two years of ratios for each company. See Attachment C for spreadsheet format – Show the ratios on one table; show your calculations on a separate table) Again, one per company. 5. Perform a horizontal analysis for the companies on the Balance Sheet and the Income Statement. See pp. 679-680 for an example. See Attachment C (Excel file) for spreadsheet format -- Show on two tables for each company. Note: you MUST use calculations in your spreadsheet for the net change column and the % column. Do NOT...