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Project 1: SEC EDGAR Research Analysis

1 Project 1: SEC EDGAR Research Analysis-Worth 10 pts.

Project 1: Objectives of SEC Research Analysis

1. Classify companies into service, merchandising, or manufacturing industry using the 10-K.

2. Analyze the annual financial statements to differentiate among the three different industries.

3. Identify differences in inventory accounts among industries.

4. Explain how inventory impacts the performance of a company through revenue generation.

Please submit one Word document double spaced for this research analysis by uploading the document by clicking on the Project 1 link. Please answer the requirements in the order they are listed below. I want you to use the 10-K file and not the interactive version of the 10-K to answer the requirements. Your submission should be at least 3 pages long. I would suggest you review the additional resources I have listed at the end of this document.

Requirements:

1. Find 3 different publicly traded companies' most recent 10-K report from the SEC EDGAR system other than Caterpillar, Inc., Wal-Mart Stores, Inc., and Southwest Airlines Company to demonstrate an example of each of the following types of companies: manufacturer, merchandiser, and a service company. The company must be an actively traded company at the present time, so if you are finding only old 10-Ks you might be looking at a company that went bankrupt, merged, or went private. Therefore, the companies you pick must be current publicly traded companies and cannot be companies that have gone private or bankrupt. Provide the URL address of each of the most current 10-K reports at the SEC EDGAR website, the CIK (Central Index Key) number for each of the companies, and the respective period of report date for each of the 10-K reports (I do not want the filing date, but the reporting date which is found on the first page of the 10-K). Read over the Quick EDGAR Tutorial under the heading Filings & Forms (EDGAR), so you have an understanding of how to use the EDGAR system if you have not used it before. http://www.sec.gov/edgar.shtml The 10-K reports can be found at the SEC website at Search for Company Filings, Click on Company or fund name, ticker symbol, CIK (Central Index Key), file number, state, country, or SIC (Standard Industrial Classification), Enter the company name or ticker symbol, Search for 10-K, and you pick the most recently filed 10-K report.

2. Explain why you have made the classifications for each of the 3 companies you identified in #1. Using the 10-K report, provide supporting information from the report that substantiates your classification of manufacturer, merchandiser, or a service company. Give the page numbers of the 10-K report you used to make the determination of which classification you used.

3. Compare the 3 income statements and explain the similarities and differences you found on the income statement in respect to how the companies report the cost of providing the product or service they sell. Explain how these costs are used to generate revenue for each of the companies. Give Dollar amounts for the costs the company is incurring to provide the product or service they sell. Give the page number of each of the income statements and be specific in your comparison by giving a description of the cost of the product or service and the dollar amounts that are being used on each of the income statements for these different costs. Make sure you are giving a detailed explanation. Additional guidance: The income statement and the statement of operations are the same thing. This is just a variation of the common term "income statement", so if your company has a statement of operations this Project 1: SEC EDGAR Research Analysis 2 is the income statement. You will see the word consolidated in most company's 10-K, which means that the company has controlling interest of other companies and has combined or "consolidated" all of these subsidiaries into the financial statement. Make sure you are using the audited financial statements and not just excerpts found in the annual report.

4. Compare the 3 balance sheets, 3 notes to the financial statements, and identify what type of inventory accounts each of the companies are presenting or are not presenting. What do these accounts represent and give dollar amounts of the inventory amounts? Make sure you are giving a detailed explanation of the similarities and differences you found in the balance sheet and notes to the financial statements in reference to how the companies are handling the inventory. Give the page number(s) of the balance sheets and notes you used for your comparison of each of these companies. Additional guidance: The balance sheet and the statement of financial position are the same thing.

Grading Rubric: Worth 10 pts.

1. 3 URLS for each 10-K report from SEC EDGAR System, 3 CIK numbers, and "period of report" date of most current 10-Ks from the SEC EDGAR system. Worth 1/2 pt. each or 1 1/2 total. You will earn zero credit for this requirement if you did not use the SEC EDGAR system to retrieve the most current 10-K.

2. Identify the company you have chosen for each of the 3 types of companies listed above and explain why you have made these classification. Include page references-worth 1 pt. each or 3 pts. Total.

3. Compare and explain the most recent audited income statements and explain the differences you found on the income statement in respect to how the companies report the cost of providing the product or service they sell. Explain how these costs are used to generate revenue. Give Dollar amounts for the costs. Give the page number of each of the income statements and be specific in your comparison by giving a description of the cost of the product or service and the amounts that are being used on each of the income statements for these different costs. You will not earn credit for this requirement unless you have included a detailed explanation. Worth total of 2.5 pts.

4. Compare and explain the most recent audited balance sheets, notes to the financial statements, and identify what type of inventory accounts each of the companies are presenting or are not presenting. What do these accounts represent and give dollar amounts of the inventory amounts? You need to include page numbers of both the balance sheet and the notes to the financial statement used in your response. You will not earn credit for this requirement unless you have included a detailed explanation. Worth 3 pts.

*** I will deduct .25 pts. For each spelling and grammar error.

***If a company's financial statements are in millions or thousands, please make sure you provide this information in your analysis. If you do not provide this information for a company that reports in millions or thousands of dollars, I will deduct 1 pt. for each company you did not provide this information for. Please realize how important this information is to a reader, since there is a big difference between giving inventory amount of $123 and $123,000,000. Project 1: SEC EDGAR Research Analysis 3

Additional resources you might want to look at if you are having trouble using EDGAR or understanding the 10-K.

1. I would suggest everyone read this link from the SEC website-How to read a 10-K http://www.sec.gov/answers/reada10k.htm

2. Another resource for 10-K shows what the report means. http://beginnersinvest.about.com/od/annualreports/a/10k.htm

3. What is a publicly traded company? http://financial-dictionary.thefreedictionary.com/PubliclyTraded+Company

4. List of publicly traded companies: http://www.investorguide.com/stock-list.php

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  • Category:- Basic Finance
  • Reference No.:- M91892460

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