tyson food report
THE FINANCIAL REPORTING PROJECT
This project involves an in-depth analysis of a publicly traded company, and a comparison of it to a competitor. The project will be completed in groups of 4.
Groups will be assigned companies by your instructor based, in part, on each group’s preference on which company to study. The companies you can choose from include:
Company Name: Most recent 10-K report date:
Avon Products December 31, 2017
The GAP, Inc. February 3, 2018
Amazon December 31, 2017
Tyson Foods September 30, 2017 Professional Custom Writing Services from the Experts!
Mattel Inc. December 31, 2017
Obtain a copy of your company’s latest Annual Report or 10-K. See the date listed above for your assigned company. This will ensure you are using the most recent report.
The project is completed in two phases. The first part of the project, which is an MS Excel spreadsheet analysis, is due at the start of the class on October 25. The second part of the project, which is an MS Word write up of your analysis, is due at the start of class on November 15. These deadlines are firm!
The spreadsheet analysis requires your group to submit an MS excel file that includes your computations for account information and ratios. Please carefully follow the instructions and requirements for completing that file. The MS Excel file must use equations linked to financial information contained in the spreadsheet. In class, you will be shown how to use Excel to complete this assignment. When calculating ratios, please use the formulas found in the course’s Libby et al., 9th edition text.
A major objective of the second part of the project is to help develop your written communication skills, including the ability to communicate clearly and concisely. Hence, the report should be between seven and ten pages (excluding a cover page, Excel tables and appendices). Your report should be double-spaced, in Times New Roman font (12-point) with a 1” margin throughout (left, right, top and bottom) and include page numbers at the bottom of each page. You are strongly encouraged to seek advice from the Northeastern University Writing Center (https://www.northeastern.edu/writingcenter/) if you need additional help drafting your analysis.
Please properly cite all information sources using MLA formatting. Further, be mindful of source credibility when determining which information sources to reference – General purpose financial websites, such as Investopedia, are not appropriate substitutes for information contained in the textbook.
The MS Word report is to be written as though you are consultants and you are preparing a report for your manager who could then present the report to a client. Therefore, you are to write this analysis in a report format (although no need for an executive summary). Do not provide a ‘list’ of answers to the assignment questions. You should use headings where appropriate to organize your report. You should also not use the words “I/we” (in reference to the authors) or “they” (in reference to the company).
Finally, carefully follow rounding requirements as specified. Round numbers to the nearest thousands or millions, and round ratios to two decimal places. For example, $65,000,000 should be presented as $65 million, and a ratio of 3.8572 should be presented as 3.86.
The first part of the project (the MS Excel spreadsheet) should be emailed to your instructor by one group member no later than the start of class on October 25. Please don’t try to submit your MS Excel spreadsheet through ‘Turnitin’, because ‘Turnitin’ does not accept Excel spreadsheets.
The second part of the project (the MS Word report) should be submitted through ‘Turnitin’ via the link on Blackboard by the start of class on November 15.
All files (.xlsx and .docx) and Turnitin submission titles must be as follows:
• Company Name_Students’ last names_sectionnumber:
o For example: “Apple_Jones.Liu.Martinez.Murray_Section08
The “Evaluation of Group Members” form (at the end of this file) must be completed by each student for each part of the project, and handed in on the day the report is due. Individual students not submitting the evaluation form will not receive a grade for the report! Points will be deducted in accordance with the grading policy (below) for late group member evaluations.
– Points will be deducted from your report if the above instructions are not followed.
– The quality of the project will be judged on the basis of the collective group effort. Thus, you are each responsible for every aspect of the product submitted by your group. Experiencing the challenges and the rewards of working as a group in a business setting is an integral part of the learning process in this course. Individual grades will be adjusted based on the evaluation of the group members submitted by each group member. Please note the purpose of this peer evaluation is to identify obvious or egregious “free riders” or “social loafers” who made very minor contributions compared to the rest of the project team.
– Based on past experience, the following procedures will help you maximize your performance in the project:
o Each group member should independently complete the entire assignment required for each part of the project before meeting with other members of the group.
o The group meetings should review all of the individual work, investigate and resolve disagreements, and work together to prepare the assignments.
o After the draft of each assignment is completed, each person in the group should review the draft to ensure that the file is accurate, writing is concise and clear, and that the spelling and grammar are appropriate, before turning in the final draft to the professor.
– Late Submissions (no exceptions): 0-24 hours: 20% deduction for the assignment. Each following day: additional 10% deduction.
– Any plagiarism will result in failure of the project and will be reported to OSCCR.
Assignment #1: Completion of the MS Excel Worksheet
Complete the MS Excel worksheet following the specified instructions. You can also make additional optional comments in the Notes for the Professor columns. Your MS Excel worksheet will also serve as the foundation for Part 2 of the Project.
Calculate key ratios like the gross margin percentage and the net income growth rate.
Report key financial information such as:
a. What method(s) of depreciation does your company use?
b. What method(s) does your company use to value its inventory?
c. Where are the resources that your company employs (i.e., what percentage of the total assets of the company are invested in current assets, long-term assets etc.)?
d. What is the breakdown of liabilities for your company (i.e., what percentage of the total liabilities of the company are current liabilities, long-term liabilities, etc.)?
e. What is the capital structure (debt versus equity) used to finance the company’s assets?
f. Which public accounting firm (the auditor) provided assurance over your company’s financial statements?
Identify key account balances found in the income statement (e.g. net sales, cost of goods sold) and the balance sheet (e.g. assets and liabilities by current vs. non-current classification). Strive to link as many account balances as possible, e.g. if you input current liabilities into Table B, you can then link the current liabilities in Table C directly to Table B, so if you change the current liabilities balance in the Table B, the balance in Table C will also change.
Identify a competitor company, and briefly explain why you chose this particular company.
Identify additional key financial information like stockholders’ equity, interest expense, number of shares outstanding, and market value price of common stock that will help you calculate key ratios in Table F (see below).
Compute key ratios (e.g. return on equity, return on assets, etc.), including supporting calculations as to how you calculated those ratios, for your company and competitor in the most current year. Use the information in Table E to link complete calculations in Table F.
Assignment #2: Completion of the MS Word Financial Reporting Project.
Reporting requirements include:
1. Identify the stock exchange(s) where your company stock trades.
2. What is the ticker symbol of your company?
3. Briefly explain the major operations of your company.
4. Record the closing price of the stock at the end of the company’s most current fiscal year. Identify the trend of the stock price from the start of this year (e.g. for a company with a calendar fiscal year, what is the price trend from January 1 through December 31?). Remember that not all companies may have fiscal year ends that correspond to calendar year ends, so please identify the fiscal year period(s).
Understanding the Annual Report and 10K:
Profit, Capital, and Cash Flow
1. How does current year’s net income (i.e., earnings) compare with that in previous years? Compute the annual growth rate in earnings for the last three years. [For example, if earnings in Year 1 and 2 are 100 and 125 respectively, the growth rate from Year 1 to Year 2 is 25%]. What earnings trend do you observe and what factors may be causing this trend?
2. Calculate the gross margin percentage (Gross Profit divided by Net Sales) for the last three years. What trend in gross margin do you observe and what factors may be causing this trend?
3. Did stockholders’ equity change significantly during the year? If so, briefly explain the cause(s) for the change.
4. Compare the cash flows from operating activities for your firm with the net income for the most recent year. What factors have contributed to the difference between these two numbers?
5. What is the capital structure of your company (i.e., what percentage of the total assets of the company is financed through liabilities, and what percentage through stockholders’ equity)? What does this structure (the structure of debt to equity to finance assets) suggest to you (i.e. is this high, potentially dangerous etc.)?
6. Did the company receive assurance via an audit from a public accounting firm? Read the auditor’s report of the company and explain the purpose of the audit from the auditor’s perspective. Identify the name of the auditing firm. In some cases, if the company changed auditors, identify the initial and subsequent auditing firms. Were there any material issues noted by the auditors? Note: the audit report is often called the “Report of Independent Registered Public Accounting Firm”.
The objective here is for you to analyze the company in terms of its profitability, solvency, and liquidity, and to provide your investment and credit recommendations. Using the information you calculated on your MS Excel worksheet, address each of the following questions. Use the results of your ratio and other analyses to support your answers:
You are to discuss the following ratio categories for your company:
(ii) Turnover (activity)
(v) Other (as applicable)
Look up what each of these terms mean, and which ratios support the analysis of each. You can state what each ratio ‘tells’ us in general (do not report how the ratio is calculated – this is given in the excel file). Considering what the ratio is ‘telling’ us, analyze how your company is performing, and compare to your competitor. After presenting each of the individual ratios under their respective categories, finally, summarize how your company is performing in each of the five categories (profitability, turnover, liquidity, solvency, and other).
The below recommendations will be based on these conclusions.
To conclude your report, provide recommendations for whether:
a. Creditors should loan money to this company in the short-term
b. Creditors should loan money to this company in the long-term
c. Investors should buy, hold, or sell the stock (use the competitor as a baseline, and be sure to consider the current price of the stock)
Good luck on your financial reporting group project! If you have any questions regarding the project, please consult your teaching assistant or instructor for further direction.
Evaluation of Group Members – The Financial Reporting Project
Company:____________________ Class time:______________________
Complete the following evaluation for your entire group.
Identify your group members in the column headings (notice that you MUST include their names). INCLUDE YOURSELF IN THE EVALUATION!!
Use the following categories to assign numerical scores from 0 to 10.
Outstanding 10 Above Average 8 Below Average 5-6 Unsatisfactory 1-2
Excellent 9 Average 7 Poor 3-4 Did not participate 0
Scores for each Group Member (write a score from 0 to 10)
Evaluation Criteria Your Name:
Name: Name: Name:
1. Attended group meetings.
2. Contributed to group discussions.
3. Assumed a fair share of the group work.
4. Worked well with others.
5. Was creative and enthusiastic.
6. Assumed a leadership role.
7. Contributed to the development, writing and editing of progress reports.
8. Was timely in preparing work.
9. Provided quality work.
10. Helped others in the group to learn.
TOTAL – please compute the total points for each group member /100 /100 /100 /100
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