Due: December 10
This research will be on the company Apple that obtains two years of information. It must be large enough for you to be able to obtain information and be publicly traded. Minimum of 9 pages. The report should make complete use of computer software using graphs, etc. Make sure you label each part section
10 points) Part 1
1. Industry Situation and Company Plans & Comparison –
a. Describe the industry and its outlook; then summarize the company’s future plans based on your research and on reading the annual report.
b. Include a market summary, past, present, and future. Review the changes in the market share, leadership, players, shifts, costs pricing, or competition that provide the opportunity for your company’s success.
c. Opportunities and Problems – State consumer problems and define the nature of product/service opportunities created by those problems.
d. Competition – Summarize the competition and outline the company’s competitive advantage.
e. Goals and Objectives – what are the five-year goals, and state the measurable objectives, market share objectives, and the revenue/profit objectives.
f. Resource Requirements – Technology, personnel, resource (financial, distribution, promotion, etc), and external requirements (e.g. products/services/technology required to be purchased outside the company).
g. Risks and Rewards – summarize risks and rewards of proposed future projects, what would the expected payoff be?
h. Key Issues – Isolate key decisions and issues that need immediate or near-term resolution. Identify issues that need long-term resolution and state the consequences of decision postponement. If they are seeking funding, what are the specifics of that funding?
2. Financial Statement Analysis (Two-year comparison)
a. Income Statement – Determine the gross profit, income from operations, and net income for the last two years; comment on the increases or decreases in these accounts. What is their main source of income, expenses, etc?
b. Balance Sheet – Describe the types of accounts that make up the balance sheet and how they have changed. Discuss the equity accounts. What types of stock are issued, how many shares do they have available to sell, what types of dividends they have paid, etc?
c. Statement of Cash Flows: Are the cash flows from operations more or less than net income for the past two years? Is the company expanding through investing activities? What is the company’s most important source of financing? Overall has cash increased or decreased over the past two years?
d. Financial Plan – Define the financial plan, pricing assumptions, and the expected sales and profits for the next three years
3. Accounting Policies Comparison
What are the significant accounting policies, if any, relating to revenue recognition, cash short-term investments, inventories, property and equipment, depreciation methods, etc? Again this is the shortlist, I expect much more.
4. Ratio Analysis
I expect significant analysis of each company’s financial position using the ratios that are included in chapter 5. Some companies will include them in their reports but they will not use all of them. Tell me what the ratio signifies.