Complete the workout
PREFACE Tony Sada Sada: Spring, Massel Note to the user: This Word document provides a structured template for preparing your responses to the questions in the annual report project. If you did not purchase the workbook you are not permitted to use this template. INTRODUCTION TO THE CORPORATE ANNUAL REPORT: A Business Application with IFRS Content 5th edition Copyright 2018 by Applied Accounting Analytics. All rights reserved. Reproduction or translation of this book beyond that permitted by the applicable copyright law without Applied Accounting Analytics’ permission is prohibited. To be completed by the student and submitted with the completed annual report project according to your instructor’s requirements. Complete the following before you submit your assignment. This step is required to validate your compliance with sections 107 or 108 of the 1976 United States Copyright Act. 1. Remove the front cover of the workbook and identify: Student Name: Tony Sada Sada Term: Spring Selected Company: Click here to enter text. Instructor: Massel 2. Print out your completed electronic template. 3. Attach the following: · This front cover (completed) · Electronic solution template · Printed reports as specified by the instructions that immediately follow Chapter 1: Select a Company and Gather Documents – Question 1 Chapter 1 - Introduction Select a Company and Gather Documents Chapter 1: Select a Company and Gather Documents—Question 1 Identify with an “X” the primary source of data for this project. Example for The Home Depot Annual Report Click here to enter text. Annual report to shareholders Click here to enter text. Annual report to shareholders with a letter from Chief Executive Officer and SEC Form 10-K as part of the annual report to shareholders. Click here to enter text. SEC Form 10-K and the company website. Fill in the page numbers from the annual report where the following are located. Required information for this workbook project. Page No. Required information for this workbook project. Page No. Financial Highlights Click here to enter text. Chief Executive Officer Letter Click here to enter text. Management’s Discussion and Analysis (MD&A) Click here to enter text. Notes to Financial Statements Insert range of pages, for example, 47 to 58. Click here to enter text. Income Statement Click here to enter text. Report of Independent Accountants or Independent Auditors’ Report Click here to enter text. Balance Sheet Click here to enter text. Five- or Ten-Year Summary of Operating Results Click here to enter text. Statement of Change in Stockholder’s Equity Click here to enter text. Management’s Report (Responsibility) on Internal Control over Financial Reporting Click here to enter text. Statement of Cash Flows Click here to enter text. Investor and Company Information or Shareholder Information Click here to enter text. Identify Why You Selected This Company Chapter 1: Identify Why You Selected This Company – Question 1 A) What is/are your motivation(s) or interest(s) in selecting this company? [See above for examples.] B) What question(s) are you seeking to answer? [For example, is the company profitable? Can the company change and develop new products and services to be competitive? Would I invest in this company? Will the company provide rewarding career opportunities? In Chapter 5 you will have pulled together the financial and nonfinancial information to answer the above questions, A) Click here to enter text. B) Click here to enter text. Company and Annual Report Essentials Chapter 1: Company and Annual Report Essentials – Question 1 What is the company’s complete name? Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 2 What is the address of your company’s corporate headquarters? Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 3 Identify the company’s website address. Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 4 Identify the telephone number and e-mail address of the company’s Investor Relations Department. Click here to enter text. Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 5 Which stock exchange lists your company? Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 6 What is your company’s stock exchange trading symbol? Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 7 What is your company’s Standard Industrial Classification (SIC) and sector? Run a search on “Standard Industrial Classification,” and the classification and code will be identified. Your company may list more than one SIC code numbers. The first listed is considered the primary SIC for the company. For example, search – The Home Depot SIC – brings up a listing of sources. Once you locate this code, search on the Department of Labor website at https://www.osha.gov/pls/imis/sicsearch.html to find out more about your Company’s SIC. SIC Code: 5211 Sector: Basic Materials, Construction, Retail Industry: Lumber and other building materials Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 8 Locate the board of directors listing. How many board members does your company have? Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 9 How many of the directors are company employees, labeled inside directors? And how many are non-company directors, labeled outside directors? Why does a company want and need outside directors? (Inside and outside directors are typically identified as such by their title and company.) Click here to enter text. Chapter 1: Company and Annual Report Essentials – Question 10 Leadership addresses the stockholders, typically, once a year at the annual stockholders meeting. Identify where and when this occurred, as reported in your annual report. Click here to enter text. The previous series of questions provides basic company information. All are building blocks of a complete study of a company through the annual report. Company Strategy and Business Environment Chapter 1: Company Strategy and Business Environment – Question 1 Review the chairman’s message of your company’s annual report. Does it appear to be uplifting or somewhat apologetic? Identify phrases that support your position. Click here to enter text. Chapter 1: Company Strategy and Business Environment – Question 2 Check below the one primary company strategy identified in the chairman’s message. Support your answer with phrases found in the chairman’s message that pointed you to the identified corporate strategy. Growth: Vertical Click here to enter text. Horizontal___ Concentric Click here to enter text. Conglomerate Click here to enter text. Stability Click here to enter text. Retrenchment Click here to enter text. . Phrases to support your conclusion: Click here to enter text. Chapter 1: Company Strategy and Business Environment – Question 3 Briefly summarize the company’s discussion found in Item 1 of SEC Form 10-K. Type of business: Click here to enter text. Major business segments: Click here to enter text. Primary customers: Click here to enter text. Primary products and/or services: Click here to enter text. Other: Click here to enter text. Chapter 1: Company Strategy and Business Environment – Question 4 Identify broad-based social, political, economic, and technological concerns that may affect your company. Put N/A if one of the categories does not apply. Social: Click here to enter text. Political: Click here to enter text. Economic: Click here to enter text. Technological: Click here to enter text. Other: Click here to enter text. Wrap-up Chapter 1: Wrap-up – Question 1 After further review of additional information you should now be confident in identifying the one primary company strategy, beyond the insight provided by the chairman’s message? Check below the one primary company strategy identified in the chairman’s message and all other supporting documents. Support your answer with phrases. Growth: Vertical Click here to enter text. Horizontal Click here to enter text. Concentric Click here to enter text. Conglomerate Click here to enter text. Stability Click here to enter text. Retrenchment Click here to enter text. . Phrases to support your conclusion from information gathered from the chairman’s message, Item 1 of the SEC Form 10-K and other insight gained from completing Chapter 1. Click here to enter text. Chapter 2 - Annual Report structure Financial Highlights Chapter 2: Financial Highlights – Question 1 Review the financial highlights of your company’s annual report to the shareholders. Identify net sales or revenues, net income, basic earnings per share (BEPS), and total assets for the current and preceding years. These are the most common values included in financial highlights. If your company reports something different, simply cross out an item here and recap what is reported. SEC Form 10-K does not provide financial highlights. You may find this information on the company website. If not available put N/A in the first row of boxes. Categories Current Year One Year Prior Two Years Prior Net sales or revenues Click here to enter text. Click here to enter text. Click here to enter text. Net income Click here to enter text. Click here to enter text. Click here to enter text. Basic EPS Click here to enter text. Click here to enter text. Click here to enter text. Total Assets Click here to enter text. Click here to enter text. Click here to enter text. Based on your preliminary review, is your company performing better than, equal to, or less favorably than in the prior year? Briefly explain. Click here to enter text. General Company and Marketing Information Chapter 2: General Company and Marketing Information – Question 1 Look for pictures of product and people that are colorful and send a positive company signal to the reader. Category Example: Volunteer Activities Message Ongoing and contributing to the success of the community Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. What is the broader message from this information? Click here to enter text. Management’s Discussion and Analysis Chapter 2: Management’s Discussion and Analysis