UCI Financial Accounting Task Paper

Description

1 attachmentsSlide 1 of 1attachment_1attachment_1

Unformatted Attachment Preview

AF210 SPRING 2022
Group Project
AF210 Financial Accounting Group Project
The purpose of this project is to further your understanding of accounting information and its
implication for investors, creditors, and other users in making rational investment, credit, and
similar decisions. You have just been hired as a stock analyst and joined a team to analyze
potential investment opportunities and present your research findings to the fund managers.
As a team, select an industry to analyze. Yahoo Finance provides lists of industries. Go to
https://finance.yahoo.com/ and click on three dots in the menu bar at the top. Click on Industries
and then you will see firms in the Basic Materials industry. If you want to look at another
industry, click on Edit and then click on the plus sign in the Sector is row. It will show you other
industries. You can select an industry and then click on Find Stocks. It will show you firms in the
selected industry. Alternatively, go to Google Finance at www.google.com/finance and search
for a company you are interested in. You will be presented with a list including its competitors
(below ‘Compare to’).
Each team member should choose one company in the selected industry and acquire the annual
report (10-K) of the selected company. You can visit the company’s website (investor relations)
or the SEC EDGAR service at https://www.sec.gov/edgar/searchedgar/companysearch.html to
download the annual report.
I. Analyzing Revenues and Receivables
On individual basis, each team member should write a short report answering the following
questions about the selected company.
1. If your company lists receivables in its balance sheet, what percentage of total assets does
receivables represent for each of the last three years?
2. Ratio analysis
a.
b.
c.
d.
What does the receivables turnover ratio measure in general?
If your company lists receivables, compute the ratio for the last three years.
What do your results suggest about the company?
If available, find the industry ratio for the most recent year, compare it to your results,
and discuss why you believe your company differs or is similar to the industry ratio.
3. If your company lists receivables, use the 10-K to determine what additional disclosure is
available concerning the allowance for doubtful accounts. (Usually the information is in a
separate schedule, Item 15.)
Discuss any patterns across the companies that you as a team observe. Then, as a team, write a
short report comparing and contrasting your companies.
AF210 SPRING 2022
Group Project
II. Analyzing Inventories
On individual basis, each team member should write a short report answering the following
questions about the selected company.
1. If your company lists inventories in its balance sheet, what percentage of total assets does
inventories represent for each of the last three years?
2. If your company lists inventories, what inventory costing method is applied to U.S.
inventories?
3. Ratio analysis
a.
b.
c.
d.
What does the inventory turnover ratio measure in general?
If your company reports inventories, compute the ratio for the last three years.
What do your results suggest about the company?
If available, find the industry ratio for the most recent year, compare it to your results,
and discuss why you believe your company differs or is similar to the industry ratio.
Discuss any patterns across the companies that you as a team observe. Then, as a team, write a
short report comparing and contrasting your companies.
III. Analyzing Long-Lived Assets
On individual basis, each team member should write a short report answering the following
questions about the selected company.
1. List the accounts and amounts of the company’s long-lived assets (land, buildings, equipment,
intangible assets, natural resources, and/or other) for the last three years. What is the percentage
of each to total assets (rounded to two decimal places)?
2. What cost allocation method(s) and estimates does the company use for each type of longlived asset?
3. What percentage of the property, plant, and equipment (rounded to two decimal places) has
been used as of the end of the most recent year? (Accumulated Depreciation/Cost)
4. Ratio analysis
a.
b.
c.
d.
What does the fixed asset turnover ratio measure in general?
Compute the ratio for the last three years. Round your answers to two decimal places.
What do your results suggest about the company?
If available, find the industry ratio for the most recent year, compare it to your results,
and discuss why you believe your company differs or is similar to the industry ratio.
AF210 SPRING 2022
Group Project
Discuss any patterns across the companies that you as a team observe. Then, as a team, write a
short report comparing and contrasting your companies.
IV. Analyzing Liabilities
On individual basis, each team member should write a short report answering the following
questions about the selected company.
1. List the accounts and amounts of the company’s current liabilities for the last three years.
2. Compute the accounts payable turnover ratio for the last two years.
3. What is your company’s working capital for the last three years? Any concerns?
4. List the accounts and amounts of the company’s long-term liabilities for the last three years.
Discuss any patterns across the companies that you as a team observe. Then, as a team, write a
short report comparing and contrasting your companies.
Requirements:
Your group needs to submit a group project report that contains the following:
(a) the list of your group members;
(b) analyses of each individual company that is selected by each team member; and
(c) team write-ups comparing and contrasting companies in your group.

Purchase answer to see full
attachment

Tags:
financial accounting

Ratio Analysis

Analyzing Revenues

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.