Learning Objectives:
- Define
the fundamental principles of accounting to describe basic business
transactions. - Identify
basic business transactions reflected in the financial statements. - Analyze
and interpret financial statements from a public company’s 10-K report. - Prepare
a concise report summarizing your findings and communicate key financial
information.
Project Steps:
1. Company Selection:
- Choose
a publicly traded company from a recognized S&P 500 or Fortune 500
index. - Ensure
the company’s most recent (issued within the last 12 months) 10-K filing
is accessible online through the Securities and Exchange Commission (SEC)
website https://www.sec.gov/edgar/search-and-access or
other financial portals.
2. Research and Analysis:
- Review
the company’s 10-K report, focusing on the following sections: - Management’s
Discussion and Analysis (MD&A): Understand the company’s
financial performance, risks, and future outlook. - Financial
Statements: Analyze the balance sheet, income statement,
statement of shareholders’ equity, and notes in the financial statements.
Pay close attention to key financial metrics like revenue, expenses,
profits, and changes on the balance sheet. - Accounting
Policies: Identify the accounting principles and methods used by
the company. - Identify
examples of basic business transactions reflected in the financial
statements. - Analyze
the financial information, considering: - The
company’s profitability, liquidity, solvency, and financial position. - Any
trends or concerns identified in the financial data.
3. Report Preparation:
- Prepare
a concise and well-organized report (approximately 3-5 pages
single-spaced) addressing the following: - Company
Introduction: Briefly describe the company and its industry. - Accounting
Principles: Explain the fundamental accounting principles used
by the company. - Financial
Statement Analysis: - Discuss
the key findings from each financial statement (Balance Sheet, Income
Statement, Statement of Shareholder’s Equity). - Identify
and explain any relevant financial ratios or metrics. - Highlight
any trends or concerns observed in the financial data. - Conclusion: Summarize
your overall assessment of the company’s financial health and changes. - Format
the report professionally, including: - A
clear and concise writing style. - Business
Report Style: Single-spaced, 12-pt, Times New Roman. - Proper
citations for any external sources used. - Well-organized
tables and charts to present financial data visually.
Deliverables:
Project
Report: Submit
your completed report in a Word document.