repare the INPUT Sheet in Appendix A using financial statement information for your company. Obtain the most recent 5 years of annual financial statements. Note the Year-End dates for the most recent 5 years. Please note that the years go from earliest to most recent. A good source of information is the Form 10-K found at: http://www.sec.gov/edgar/searchedgar/companysearch.html Item 8: Financial Statements and Supplementary Data Find summarized financial statement information at http://money.msn.com ... Left-hand menu Financials Detailed Statements 5 years of data http://finance.yahoo.com http://www.google.com/finance B. Prepare the INPUT Tab of the FSAP Excel Template file posted in Moodle. Download the FSAP Excel Template. Save as Your name Your company name. Enter your INPUT Sheet data into the Excel INPUT Tab . Replace existing data. Only enter new data on the Cover Page and INPUT sheet (more specific instructions located on the Excel COVER Tab) as information in the OUTPUT Tabs automatically update. UPLOAD your completed Excel spreadsheet in Moodle. APPENDIX 1: Include copies of your companys original financial statements. Part 2: Financial Statement Analysis PRESENTATION C. Prepare the Research Summary Use the format shown in Appendix B to prepare a 2-page summary of your analysis. Write the overall conclusion summarizing your research in a clear and concise manner. Indicate whether you would invest or not invest in your company. Use information contained in your report to support your conclusion. D. Prepare PowerPoint slides to use as a visual aid UPLOAD slides in Moodle at least 24 hours before your scheduled presentation. Remember that PowerPoint slides are visual aids. One rule of thumb is no more than 7 items across and 7 items down. Slides should contain bullet points, not sentences or paragraphs. E. Prepare and deliver an oral presentation 3-6 minutes, not including Q&A. If working in a group, each group member must speak during the presentation. Convince the audience to invest or not invest in your company. Use the Research Summary to help organize your presentation. You will be expected to answer questions from the audience. Please wear business casual attire. PRESENTATION CONTENTS 1. Company Description Write a description of your company, its industry, its products, and its markets. A good source of information is the Form 10-K found at: http://www.sec.gov/edgar/searchedgar/companysearch.html Item 1: Business Item 7: Managements Discussion & Analysis (MD&A) 2. Use the Notes to the Financial Statements to identify: (1) Inventory cost-flow assumption, if the company has inventory (2) Depreciation method used for financial statement and tax purposes (3) Major operating segments of your company and the proportion of sales revenue generated by each. For example, Apples operating segments include the iPhone, iPod, Mac computers, etc. (4) Proportion of domestic and international sales. 3. Company News Search for major items or events that have affected your company or its industry over the past yearat least 2 events. Make certain that the item is truly newsworthy. For example, the announcement of a dividend is not newsworthy unless it is a major surprise. (1) Briefly describe each event. (2) Discuss how this event will affect the companys operations and the financial ratios. 4. Financial Statement Analysis Analyze your companys Profitability, Liquidity, and Solvency Prepare a comprehensive analysis of the OUTPUT Tabs of the Excel FSAP Template file, which provide condensed, common-sized, trend, growth, and ratio information to aid in the analysis of your company. Balance Sheet include an analysis of LIQUIDITY and SOLVENCY (Risk). Income Statement include an analysis of PROFITABILITY using the DUPONT Analysis. Statement of Cash Flows Include an analysis of Earnings Quality. Ratios include an analysis of Profitability, Liquidity, and Solvency. APPENDIX 2: Include printouts of each Excel INPUT and OUTPUT Tab. WRITTEN REPORT Information for your INSTRUCTOR Research Summary using the format shown in Appendix B. Hard-copy of your PowerPoint (6 slides per page) Sources Used Appendix 1: Copies of your company's original financial statements Appendix 2: Printouts of the Financial Statement Analysis INPUT and OUTPUT tabs GRADING of the Financial Statement Analysis Project Reports will be graded on comprehensive coverage, accuracy of the analysis, use of a clear and concise presentation style, and professional appearance.