Please select a company that your group would like to analyze throughout the semester. You will use the same company for three assignments.
The goals of the first assignment are (1) to introduce you to the 10K/Q reports issued by US corporations in accordance with SEC regulations and (2) to familiarize yourselves with the company you plan to study this semester. 10K/Q reports can be found on a company’s website, or on EDGAR, located at www.sec.gov. However, EDGAR can also be accessed through Mergentonline available through Hofstra’s electronic library. You might have to use other sources in the Hofstra Electronic Library to complete a few of these items. You can also go to the company’s website for information.
Answer the following questions about your group’s company. Your answers should be written in a REPORT FORMAT (i.e. paragraphs, not in a question and answer format) and should be typed. This means that you should use the questions as a guideline for the information you need to include in your report. Please do not cut and paste from the 10-K/Q report or any other source, and use footnotes when appropriate. Students who cut and paste segments of their report will not receive credit for the assignment and will not be given a make-up assignment. I would like each person in the class to submit an individual report because I would like everyone to read through an entire 10-K or 10-Q report.
Students must submit their report prior to class on the due date listed on the syllabus through Turnitin. Please be aware that Turnitin will flag any materials cut and pasted from source documents.
REPORT CONTENT
Note that some information might have to be obtained from sources other than the company’s 10-K. Also, some information might not be available for a given company. If this is the case, just state so.
1.
Company Name__________________________
2.
Average number of outstanding shares_______________
3.
Number of shareholders_______________________
4.
Company Industry________________________
5.
SIC Code_______________________________
6.
End of company’s fiscal year___________________
7.
Who are the company’s competitors? Identify 4 competitors and find their SIC codes.
8.
What products does this company produce? Or services does it provide? (i.e. how does it generate revenue)
a.
Is the product/service differentiated? (on price or quality)
b.
Is the product unique?
c.
Is the market competitive? (many firms in the market, barriers to entry, etc.)
d.
Does the company have patent protection for its product?
e.
Is the company innovative? Or, does it follow other companies?
9.
What does management believe are the key risks that the company faces in the future? in (see for example, international risks, business risks, currency risks)
a.
Which of these risks are under the company’s control?
10.
How does management plan to handle any risks?
11.
Identify the top executives in the company and their compensation, including stock based or other compensation.
12.
Does the company have an ethical code under which it operates? What is it?
13.
What does it mean for a company to follow sustainable practices? (See the ESG index)
14.
Does this company follow sustainable practices? What are they?
15.
Does the company face any legal constraints in its operating environment, either in the US or internationally? These might include: product and price regulations, labor laws, consumer regulations, environmental regulations, tax laws, anti-trust laws. How does the company handle these constraints?
16.
Does the company utilize hedging to offset the risk of any of its positions? Does it use hedging to offset financial risk or inventory risk?
Refer to the footnotes to the Financial Statements to answer the following questions:
From the Balance Sheet:
1.
How does the company define “cash equivalents”?
2.
What method(s) does the company use to classify its inventory? How will this affect the value of Cost of Goods Sold?
3.
What percentage of accounts receivable is considered uncollectible?
4.
Describe what assets are contained in “other current assets.”
5.
What is contained in goodwill, if the company has this account?
6.
What methods does the company use to depreciate its assets?
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