Research Companies' Financial Reports

Research Companies' Financial Reports.

• Conduct your own research about 2008 crisis which affect these 3 companies differently- Ford, GM, and FCA.Discuss the difference in reaction and outcome.
• Interest on bonds issued by state and local governments are exempt from federal income tax. Discuss the economic effects of this exemption, and whether the Congress should repeal this exemption.

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Research Companies’ Financial Reports

Review Ford Motor Company’s Financial Report

Research Ford’s Financial Report https://shareholder.ford.com/investors/financials/monthly-sales-report/default.aspx

Read Ford’s success story in chapter 18 of Enterprise Risk Management: From Incentives to Controls, Second Edition

Review Fiat Chrysler Automobiles’ Financial Report

Review General Motors’ Financial Report

• Often companies, in an attempt to be transparent, created a one page infographic overview of the financial report.
• Have you ever made an infographic? Use the resources and tutorials at Piktochart.com to learn how.
• Piktochart

Create a 1 page overview of the financial report for each of the 3 companies. Make it a visual and an inforgraphic.

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Choose a company from the list of which you will conduct a financial analysis

• Best Buy
  • Barns and Noble
  • Quiznos
  • J.C. Penney
  • Sears
  • Radio Shack
  • Ford
  • Martha Stewart Living

Include:

• Name and description of the company
  • Perform an accurate analysis of a company’s financial statements.

Guidelines:

1. Obtain the company’s financial statements for the last 3-5 years. You can find these on the web. You will want to find the company’s balance sheets, income statements, shareholders equity statements (if any) and any cash flow statements. 
   1. Conduct a quick review of all of the statements to look for big jumps or losses in any area during this period.  When you come to a questionable issue, dig deeper into the change to see if you can find out why. For example, Quiznos had a major drop in sales in 2007 that has continued to plague the company. You would want to find out what happened around that time and why it affected sales. 
   1. Examine the balance sheet to again look for changes in assets, liabilities, or equities.  Is their debt growing or have they taken measures to reduce the debt? Have they had a new infusion of capital? Research any areas of concern.
   1. Examine the income statement.  Look for trends over time.  Calculate and graph the growth of the following entries over the past several years. 
      1. Revenues (sales)
      1. Net income (profit, earnings)
      1. What do the graphs show you?  Are you seeing growth over time, a downward trending, or an erratic up and down in revenue? Is there excessive spending in any one area? Is there an unusual expense?  Research and report on any unusual events.
   1. Examine the shareholder’s equity statement.  Has the company issued new shares, or bought some back?  What are the stock prices doing?  What does this suggest about the company?  Review the dividend payouts and stock prices over time.  Again, research any activity that is unusual. 
   1. Examine the cash flow statement, which gives information about the cash inflows and outflows from operations, financing, and investing.  How is the company using its cash?
      1. Cost of Equity
      1. Calculate financial ratios in each of the following categories, for each year.

Research Companies' Financial Reports

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