Annual Report Group Project
COMM 217, Winter 2011
Annual Report Group Project
The purpose of this group project is to familiarize students with the contents of annual reports, especially the financial section of the report. The project consists of a series or questions that pertain to various topics that are covered in the course.
The class will be divided into a number of groups. Each group will consist of five members. You should start forming your group as soon as possible (see last page of this document). Tell your instructor if you have difficulty finding other people to form a five-person group. He/she will help you form your group.
Each group will be assigned, at random, a company to analyze. A maximum of four groups will be …show more content…
1.4 Are its financial statements audited by independent auditors? If so, by whom?
1.5 Did the company’s total assets increase of decrease over the last year and by how much?
1.6 Did the company’s net income increase of decrease over the last year and by how much?
Chapter 2 (6 marks) 1. For the most recent year, what are the top three asset accounts by size? What percentage is each of total assets? (Computed as Asset A ÷ Total assets)
2. What are the major investing and financing activities (by dollar size) for the most recent year? (Look at the cash flow statement.)
3. Ratio Analysis:
a. What does the debt-to-equity ratio measure in general?
b. Compute the debt-to-equity ratio for the last three years. (You may find prior years’ information in the section in the annual report called “Selected Financial Information,” or you may search for prior years’ annual reports.)
c. What do your results suggest about the company?
Chapter 3 (8 marks) 1. For the most recent year, what is/are the major revenue account/s? What percentage is each to total operating revenues? (Computed as Revenue A ÷ Total …show more content…
Compute the ratio for the last three years.
a. What do your results suggest about the company?
10.4. Ratio analysis: a. What do the accounts payable turnover ratio and the average age of payables measure in general? b. Compute these ratios for the last three years. c. What do your results suggest about the company?
10.5. What is the effect of the change in accounts payable on cash flows from operating activities for the most recent year (that is, did the change increase or decrease operating cash flows and by how much)? Explain your answer and identify the direction and amount of the change.
Chapter 5 (8 marks) 1. Which of the two basic reporting approaches for cash flows from operating activities did the company adopt?
2. What is the quality of income ratio for the most current year? What are the major causes of differences between net income and cash flow from operations?
3. What is the capital acquisitions ratio for the three-year period in total? (Refer to the ratio computation in the textbook on page 249.) How is the company financing its capital expenditures? 4. What portion of the current year’s cash flow from operations is being paid to shareholders in the form of
Annual Report Group Project
The purpose of this group project is to familiarize students with the contents of annual reports, especially the financial section of the report. The project consists of a series or questions that pertain to various topics that are covered in the course.
The class will be divided into a number of groups. Each group will consist of five members. You should start forming your group as soon as possible (see last page of this document). Tell your instructor if you have difficulty finding other people to form a five-person group. He/she will help you form your group.
Each group will be assigned, at random, a company to analyze. A maximum of four groups will be …show more content…
1.4 Are its financial statements audited by independent auditors? If so, by whom?
1.5 Did the company’s total assets increase of decrease over the last year and by how much?
1.6 Did the company’s net income increase of decrease over the last year and by how much?
Chapter 2 (6 marks) 1. For the most recent year, what are the top three asset accounts by size? What percentage is each of total assets? (Computed as Asset A ÷ Total assets)
2. What are the major investing and financing activities (by dollar size) for the most recent year? (Look at the cash flow statement.)
3. Ratio Analysis:
a. What does the debt-to-equity ratio measure in general?
b. Compute the debt-to-equity ratio for the last three years. (You may find prior years’ information in the section in the annual report called “Selected Financial Information,” or you may search for prior years’ annual reports.)
c. What do your results suggest about the company?
Chapter 3 (8 marks) 1. For the most recent year, what is/are the major revenue account/s? What percentage is each to total operating revenues? (Computed as Revenue A ÷ Total …show more content…
Compute the ratio for the last three years.
a. What do your results suggest about the company?
10.4. Ratio analysis: a. What do the accounts payable turnover ratio and the average age of payables measure in general? b. Compute these ratios for the last three years. c. What do your results suggest about the company?
10.5. What is the effect of the change in accounts payable on cash flows from operating activities for the most recent year (that is, did the change increase or decrease operating cash flows and by how much)? Explain your answer and identify the direction and amount of the change.
Chapter 5 (8 marks) 1. Which of the two basic reporting approaches for cash flows from operating activities did the company adopt?
2. What is the quality of income ratio for the most current year? What are the major causes of differences between net income and cash flow from operations?
3. What is the capital acquisitions ratio for the three-year period in total? (Refer to the ratio computation in the textbook on page 249.) How is the company financing its capital expenditures? 4. What portion of the current year’s cash flow from operations is being paid to shareholders in the form of