I attached the assignment
Press Release Report: Accounting, the Language of Business - Analyzing a Press Release Overview To think of accounting as an exercise in “juggling numbers” is to miss the point. The primary purpose of accounting is to provide information that is useful for decision-making purposes. In today’s highly competitive business environment, prudent decision-makers, both internal to the firm and external to it, make informed decisions based on as much “hard” financial information as is available. Accounting provides the metrics by which we can gauge the strength of a business in terms of its profitability, its liquidity its solvency, etc. Accounting is, indeed, the “language of business”. The primary goal of the project is to provide an opportunity to relate the course content to what is reported in the “real world” via press release. Secondary goals include utilization of the Internet to perform basic accounting-related research and enhancement of written communication skills. What’s a Press Release? Generally, companies that are publicly owned publish financial results each quarter in the form of a news release sometimes referred to as an “earnings release”. Typically, the release contains a few pages of text describing financial results of business operations during the quarter and financial statements are attached “financial statements” are covered in our first couple of weeks). You Need an Earnings Release Companies will issue press releases for a variety of purposes, including announcement of a new product, a new location, a newly hired executive, or monthly sales reports. While all of these are press releases, none of them is the particular type of press release called an earnings release, which is what you need. It may be called by a different name; the title of it may refer to earnings, profits, results of operations or financial results. If you are in doubt as to whether you have located an appropriate release, email it to me. Probably the easiest way to find the earnings release is to do a Google search on the name of the company followed by the words “investor relations”. Mon the screen that comes up, many companies will provide a link top press releases or news releases. There may be a number of different types of press release in investor relations. Remember, you want the one that reports the quarters’ financial results. Some companies call it a release about results of operations. Some call it an earnings release. Again, you may need to hunt a bit – patience and persistence may be necessary. The key is to be sure the press release you use concerns itself with reporting the company’s earnings for the quarter specified later in this document (earnings may also be called profit or net income) results. I will demonstrate the search for an earnings release in class, using a company other than one of those listed below. Not Every Company’s Release Will Work! Three companies are listed below. For purposes of this project, please select one of these companies – these companies were chosen for a reason – do not substitute your own choice of a company!!!! All 3 companies issued an earnings press release in November 2020 and you should use that release – not earlier and not later. Web sites can change frequently and the releases below have been reviewed to ensure they will enable you to answer the questions that you need to answer. Here are the three companies. JW Nordstrom Tiffaney & Co Capri The Final Product: The final product will have several components: 1) A Word document in which you have answered the questions posed at the end of this handout. With respect to the paper, please note the following. a) Express yourself clearly and concisely in complete sentences. A portion of the credit for the paper will be assigned to spelling, grammar, clarity of expression and documentation. The paper should be double spaced (APA guideline). Use the spell/grammar check features of Word, proof and edit your paper. Include in-text APA-style citations where appropriate and a references page. The Writing Center can help you with this aspect of the paper. b) I am more interested in the quality than the quantity of your report. From a qualitative perspective, think of your project as something you would be willing to submit to an important client or to a senior executive of your company. c) Please number your answers to correspond with the related question rather than forging your answers into a continuous essay. If you do otherwise, you will not earn full credit. d) Include a title page and a references page. 2) The foregoing will be submitted by uploading to Canvas. Please save your file as your last name_name of the company you picked. So, for example, Jessica Smith might name her file Smith_Capri. Be sure to upload your project and the chosen company’s earnings release to Canvas by due date. Note that in the event of any Canvas difficulties, you need to contact Student Support on the Canvas homepage. Due Date: The due date is set out in the curse calendar. As indicated above, your project should be submitted by uploading to Canvas. Back up your work, as technological malfunctions will not be accepted as justification for a late submission. Late papers will be penalized each calendar day they are late and, after a few days, may not be accepted at all, at my option, resulting in a zero grade for the project. A good idea might be to save your project either on your desktop at LIM or on the hard drive of your PC AND to back up your work on a flash drive. It takes seconds to do that and ensures that you have 2 copies of your report. “My computer crashed at the last minute” or “I left my PC at my boyfriend’s/girlfriend’s/mother’s/sister’s house” are not reasons to submit late! Content of your report… Here are the questions that you need to address in your paper. Be sure to use the press release released at the time I specified above and answer based on quarterly (not year to date) data. Use your text and other resources as needed with regard to definitions, etc. Remember to document where necessary, using APA style (both in text and references page). For full credit, please number your answers to correspond with the related question rather than forging your answers into a continuous essay. 1) To get started, answer the following. a) In the first few pages of our textbook, the author sets out the objective of most businesses. What is that objective? Provide a bit of explanation of the meaning of that objective. So, for example, if the text says that the objective of a business is to “go green” (that is not the answer), you would explain what “going green” means. You should be able to find the answer to part a in the text with no problem. (5 points) b) What does the company say in its release about that objective? Make reference to specific data, both dollars and change from the prior period. In effect, what does the company say about achieving that objective during the quarter? (5 points) c) What does senior management have to say about the company’s performance during the quarter? (5 points) d) Give one other piece of information that the company discusses in its press release that you think is important. Be specific and indicate why you selected that information. The more important the information the more credit you will earn on part d. (5 points) 2) This question is about stakeholders. a) Our text defines stakeholders in Chapter 1. What is a business stakeholder? (5 points) b) In Figure 2, the text gives examples of business stakeholders. Select one of those stakeholders and tell me which you selected. Then tell me why that particular stakeholder would be interested in the information in the press release. Make it specific – don’t say “I chose employees and they are interested because they want the company to do well”. You could say that about any business stakeholder. Again, make it more specific. (5 points) 3) This question relates to financial statements that may be attached to your press release. a) Concerning your company’s balance sheet: (5 points) i) Is there a balance sheet attached to the press release? ii) If so, do the words “balance sheet” appear in the title of the balance sheet? If not, what does the company call it? iii) If your answer to ii above is “no”, how were you able to recognize the balance sheet? If your answer to ii is “yes”, you do not need to answer this part iii. b) Concerning your company’s income statement: (10 points) i) Is there an income statement attached to the press release? ii) If so, do the words “income statement” appear in the title of the income statement? If not, what does the company call it? iii) If your answer to ii above is “no”, how were you able to recognize the income statement? If your answer to ii is “yes”, you do not need to answer this part iii. c) Are the financial statements for your company precise to the dollar? Comment briefly. Hint: begin at the top of the income statement (which is the name of the company) and begin reading down slowly and carefully and you will find the answer. Students frequently answer this question incorrectly. Follow my hint and look carefully. This should be an easy one. (5 points) 4) Answer the following for the company you have chosen. a) What amount of resources owned by the company is reported in its financial statements? How can you tell? This was covered within the first few classes in the course and the text’s discussion of stakeholders and its first discussion of the accounting equation in chapter 1 may be useful in answering this part. Use the index at the back of the book to help you find that information. I need both a number and an indication as to where you found it. (10 points) b) What is the amount of the total claim of shareholders against the assets of the company you have selected? How can you tell? This was covered within the first few classes in the course and the text’s discussion of stakeholders and its first discussion of the accounting equation in chapter 1 may be useful in answering this part. Use the index at the back of the book to help you find that information. I need both a number and an indication