13 Jan Resources: Textbook

ACC 549 Financial Statement Analysis Project Guidelines

This project consists of six parts. You are to act as a financial advisor to a client interested in

investing in a particular industry. You will research two separate companies in the same industry and

provide a recommendation to your client which company, if any, he/she should invest in. One of the

companies should be a U.S. public company (10-K Annual Report), the other company should be a

foreign company listed on a U.S. exchange (20-F Annual Report). Good examples: Ford and Toyota.

Part 1: Selection of companies

Submit the names of your two public companies to the instructor for approval. Identify the industry

they are in. Make sure one is a US Company and one is a Foreign Company listed on a US

Exchange.

Submit to the Dropbox no later than Sunday 11:59 PM EST/EDT of Module 1.

Part 2: Obtain Financial Statements from SEC.GOV

Obtain six years of financial statements for your company from SEC.gov. Do not use other sources

(Yahoo Finance or the Company Website) to obtain this information.

Resources: SEC Edgar Database at sec.gov

1. Go to www.sec.gov

2. Search for Company Filings

3. Enter Company Name, example (Nike Inc.)

4. For the Annual Report select 10-K (or 20-F)

5. Select documents

6. Select form 10-K (or 20-F)

7. This is the entire annual report, you only need the financial statements

Submit to the Dropbox no later than Sunday 11:59 PM EST/EDT of Module 2.

Part 3: Enter data into the FSAP (Financial Statement Analysis Package) Excel File Enter the

Balance Sheet and Income Statement amounts for 5 years into the Financial Statement Analysis

Package Excel file on the Data Tab of the FSAP.

Resource: FSAP Excel file.

Submit to the Dropbox no later than Sunday 11:59 PM EST/EDT of Module 3.

Part 4: Company Analysis

Write a brief description of the primary business activities for your assigned companies. Focus more

on their position within the industry, recent developments, fluctuation in stock prices relative to the

market/industry, and other items of significance that would impact your investment decision. Do not

focus on the history and background of the company, but rather on information that would be

relevant to decision makers.

The paper should be 2-3 pages, 12 pt. font, single spaced.

Resources: Annual Report (management discussion and analysis), Company website, trade

journals.

Submit to the Dropbox no later than Sunday 11:59 PM EST/EDT of Module 4.

Part 5: Industry Analysis

Summarize the economic outlook for your industry. Look at recent market activity, recent indicators

impacting your industry. Address recent change in stock prices. Obtain industry averages for your

ratio, vertical, and common size analysis (see the Analysis tab of the FSAP). Consider other expert

buy/sell/hold opinions.

The paper should be 1-2 pages, 12pt. font, single spaced.

Resources: Standard and Poor’s Stock Reports or other Industry Surveys, Mergent’s Industry

Review, Finance.yahoo.com, moneycentral, msn.com, hoovers.com, other financial websites, annual

reports, and trade journals. Examine recommendations of other investment websites (buy/sell/hold).

Incorporate peer reviewed academic research articles into your analysis. Analysis tab of the FSAP

Excel file.

Submit to the Dropbox no later than Sunday 11:59 PM EST/EDT of Module 5.

Part 6: FINAL PAPER

1. Include Company Analysis (address prior comments): 2-3 pages

2. Include Industry Analysis (address prior comments): 1-2 pages

3. Include FSAP summary – Summarize the Analysis Tab of the FSAP which contains Ratios,

Horizontal Analysis, and Common Size Analysis. Summarize the information in a

professional and organized manor. Do not just cut and paste the information into your paper.

4. Write a summary of the significant findings from the financial statement analysis. This should

be 2-3 single-spaced pages, using 12-point font. Address the Company & Industry analysis.

Address significant Ratios, Horizontal Analysis, and Common Sized Analysis from the FSAP

(look under the Analysis Tab). Do not address all the ratios and every line of vertical and

horizontal analysis, just what you feel is important and significant to your decision. Focus on

the specific items that stood out and impacted your decision. Include academic research to

support your analysis.

5. Based on your findings, which company, if any, would you invest in? Include specific support

for your decision based on your findings in the analysis. Also include support (for or against)

investing in the industry you chose. Include academic research to support your final decision.

This should be one page, 12-point font, single-spaced.

Resources: Textbook and Academic peer-reviewed journal articles.

The Final Paper should be 6-9 single-spaced pages plus tables.

Submit the Project Part 6: Final Paper to Chalk and Wire no later than Sunday 11:59 EST/EDT of

Module 8. The Project Part 6: Final Paper Chalk and Wire link is located in the Module 8 folder.

Students who do not submit the assignment to Chalk and Wire will receive a zero. This is a key

program assessment; the results are used to ensure students are meeting program goals. Video and

PDF instructions can be found on the course home page. PDF instructions are also located in the Start Here folder