BA2340CompanyProjectInstructions DueDate:Friday,March26,2010 Coursepoints:100 Instructions: Thisisanindividualproject;notagroupproject.Toreceivecredit,youmustturninworkthatiswrittenbyyou personally.Youmayworkwithanotherstudenttofindanswerstoquestions;howeveryoumustanswerall questionsinyourownwords. CompanyprojectsneedtobesubmittedonBlackboardusingwordprocessingsoftwarebytheduedate. Useadiscussionformatforeachsectionratherthanaquestionandanswerformat.Seetheexampleprovided onBlackboard.YouareencouragedtousetheUniversitysWritingCenterforassistance.Turninginpoorly writtenreportswithspellingandgrammaticalerrorswilllowerthegradebyonefullletter. Usethemostrecentannualreportorform10Ktoanswerquestionsaboutthecompanyyouchoseforthis report.Otherwebsitesmaybeneededtoanswersomeofthequestions.Ifyoucannotfindananswer,note thatyoulookedunsuccessfullyorexplainwhythequestiondoesnotapplytoyourcompany.Youmayalsoemail meifyouarehavingtroublefindingtheanswertoaquestion.

toaquestion. Besuretousethe"consolidatedfinancialstatements"and"notestothefinancialstatements."Selected financialhistories,summariesofsignificantfinancialinformation,etc.shouldNOTbeused.Thesereports arepreparedbycorporationstoprovidesupplementalinformationandtheyarefrequentlydesignedto promotestocksalesorothersimilarobjectives.Theyarenotnecessarilyinconformancewithgenerally acceptedaccountingprinciplesintheUS. Foreachsubjectarealistedbelow,includereferences.Forexample,informationaboutyourcompany's inventoryvaluationprocedureswasfoundintheconsolidatedbalancesheetandonpage88oftheannual reportinthefirstnotetothefinancialstatements. CompanyProjectQuestions: Inventories 1. Whatisthetotaldollaramountreportedforinventoriesattheendofthemostrecenttwoyears?Are inventoriesincreasingordecreasing? 2. Whatmethod(s)ofinventorycostingdoesthecompanyuse? 3. Determinetheinventoryturnoverrateandaveragedaysininventory. 4. Determinethepercentageoftotalassetsthatthecompanyhasinvestedinitsinventories. 5. Didyoufindanythingunusualorinterestingaboutthecompany'sinventoriesinthenotestothefinancial statements?Brieflyexplain. Cash&CashEquivalents 1. Howmuchdoesthecompanyreportincashandcashequivalentsforthemostrecenttwoyears?Doesthe companyreportincreasingordecreasingamountsonitsbalancesheet? 2. Determinethecompany'squickratio. 3. Refertothecompany'sstatementofcashflows.Whatisthecompanyreportingforcashprovidedandusedfor thethreemaincategoriesofthisstatementforthemostrecenttwoyears?Brieflycommentonthesignificance ofyourfindings. 4. IsthecompanyincompliancewithSOX(SarbanesOxleyAct)requirementswithrespecttointernalcontrolsover cash?Brieflyexplain. AccountsReceivable 1. Whatisthecompanysaccountsreceivablebalanceforthemostrecenttwoyears?Dotheamountsindicatean increaseordecreaseforthetwoyears?

2. Whatdoesthestatementofcashflowsreportforincreaseordecreaseincashforaccountsreceivable? 3. Doesthecompanyemploytheallowancemethodforbaddebts?Howdoesthecompanydeterminethe percentageusedforbaddebts?Whatisthepercentageused? 4. Doesthecompanyfactoritsreceivables? 5. Determinetheaccountsreceivableturnoverratioandaveragedaysinaccountsreceivableforthemostrecent twoyears.Brieflycomment. 6. Basedonyouranswerstothequestionsinthissection,commentonthecompany'saccountsreceivable managementpolicies. FixedAssets 1. Whatisthevalueoflonglivedassetsreportedonthecompany'sbalancesheetforthemostrecenttwoyears? 2. Whatmethod(s)ofdepreciationareemployedbythecompany? 3. Doesthecompanyhaveanyotherlonglivedassets?Identifythemandprovidethedollarvalueforeach. 4. Doesthecompanymentionanycapitalleases?Brieflyexplain. 5. DeterminetheReturnonAssetsratioforthemostrecenttwoyears.Commentonyourresults. Liabilities 1. Breakdowntotalliabilitiesintocurrentandlongtermamountsforthetwomostrecentyears.Whattrendscan youseeinthetwoyears? 2. Whatisthecurrentratioforthetwomostrecentyears?Commentonyourresults. 3. Doesthecompanyhavebondspayable?Ifso,whatarethebalancesoutstandingattheendofthetwomost recentyears?Whatmethoddoesthecompanyemploytoamortizebondpremiumsordiscounts?Whenwillthe bondissueswillmature? 4. RefertoMoody'stofindyourcompany'sratings.UsingthebasicinformationforinterpretingMoody'sratings, explainwhatyourcompany'sratingindicates. 5. Determinethepercentageofthecompany'stotalassetsthatarefinancedwithdebtforthetwomostrecent years.Brieflycomment. Stockholders'Equity 1. Determinethequantityofsharescommonstockthatyourcompanyhasauthorized,issuedandoutstandingat theendofthemostrecenttwoyears.Doesthecompanyhavemorethanoneclassofcommonstock? 2. Doesthecompanyhaveanypreferredstock?Isso,usethenotestothefinancialstatementstoreportdetails forthisclassofstock(parvalueanddividend,participating/nonparticipating,cumulative/noncumulative). 3. Whataretheearningspershare(basicanddiluted)reportedforthemostrecenttwoyears.Explainthe differenceinthemethodusedtocalculatethetwovalues.Doyouseeanincreaseordecreaseinearningsper share(EPS)forthetwoyears?Brieflycommentonthesignificanceofthetrend. 4. Inwhichstatedidyourcompanyincorporate?Whichstockexchangetradesyourcompany'sstock? 5. Whatisthecurrentmarketvalueofyourcompany'sstock?Includethedateyouusedtocheckmarketvalues. 6. Whatarethecompany'spoliciesconcerningdividendpaymentstoinvestors?Hasthecompanypaidanycash dividendsinthemostrecenttwoyears?Doyouseeanincreasingordecreasingtrendindividendamounts? 7. Didthecompanydeclareanystockdividends?Explainthedifferencebetweencashandstockdividends. 8. Hasyourcompanydeclaredanystocksplitsduringthetwomostrecentyears?Ifso,providedetails. 9. DoesthecompanyreportanyRetainedEarningsrestrictions?Brieflyexplainthereasonfortherestriction. ConcludingComments 1. Summarizeyourcompany'sperformancebasedonyouroverallanalysis. 2. Doyoubelievethecompanyiswellpositionedtosucceedinthecurrenteconomicsituation?Toanswerthis question,youcoulddescribetheirplanstodownsizetoimproveefficiencyoranyplansthecompanyhasto introducenewproducts,improvecurrentproducts,orenternewmarkets.Someofthisinformationmaybe foundinthePresidentorCEO'slettertothestockholders.Currentnewsreleasesmaybeanothersource. 3. Wouldyoubuythecompany'sstockorbonds?Explainwhyorwhynot. 4. Basedonyouranalysis,wouldyouconsiderworkingforthiscompany?Brieflyexplain.