SECTION II – Financial Statements

Annual Report Page Reference __________ (page the actual financials start)
 
A.    General Information:


1.      Describe the principal business activity(ies) of the firm.
2.      Where is the corporate headquarters located?
3.      Over what stock exchange(s) is the firm’s stock traded?
4.      Complete the following table:

Date	Basic E.P.S.	Diluted E.P.S. *
Current Year
Previous Year
2 Years Ago

(you may have to open the prior year annual report)



 
5.      The Auditor’s Report


a)      Audit firm ___________________________________


b)      Audit opinion

___________	Unqualified
___________	Qualified
___________	Adverse
___________	Disclaimer

(if more than 20, you can stop here)
SECTION III – Specific Accounting Issues
 
A.    Accounts and Notes Receivable*:

	Prior Year	Current Year
1.       Current accounts receivable	______________	______________
2.       Estimated uncollectible accounts* (if not available just show net and current as the same)	______________	______________
3.       Net current accounts receivable	______________	______________
4.       Net sales.	______________	______________
5.       # of days’ sales in receivables	______________	______________

6.      Item 5 is a ratio often used by analyst’s to evaluate the quality of accounts receivable. 
 

B.     Inventory*

1.      Summarize the valuation method(s) used by the firm to account for inventory (from the notes).
2.      Complete the following table:

	Prior Year Amount	Current Year Amount
Beginning Inventory	______________	______________
Ending Inventory	______________	______________
Net Sales	______________	______________
Inventory turnover	______________	______________
Valuation Method (LCM or?)	______________	______________

 
 
3.      Inventory turnover is a statistic used by analysts to evaluate the effectiveness of inventory management.  Critique the ratio, highlighting strengths and weaknesses of the usefulness of the item.

C.     Income Taxes


1.      What was the effective average tax rate, given the reported tax expense, on corporate earnings:(= Tax Expense/Profit)

For the current year?  ______________

For the prior year?     ______________

D.    Leases*


1.      Operating Leases

a)      What is the annual and five year total commitment (minimum annual fixed rental payments) under non-cancelable operating leases?  (see notes)

b)      What is the % of annual operating lease rental payments to total annual revenues for the prior two years?
 
E.     Pensions*


1.      Does the firm offer a pension plan?         YES             NO

If yes, identify the type of plan:

	Defined benefit plan	______	Defined contribution plan	______
	Other (describe)	______
2. If yes, what is the amount of net defined asset/liability on the balance sheet regarding pensions   ______________________________

 

 
E.     Stockholders Equity


1.      Complete the following table:

	Common Shares Outstanding	Contributed Capital	Stock Class	Shares Authorized
Beg. of Yr	____________	$____________	____________	____________
End of Yr.	____________	$____________	____________	____________

2.      Were there additional shares issued this year? ________________

Describe the circumstances surrounding the issuance of these shares.


3.      Did the firm reacquire their own shares during the year?    YES             NO

4. List any preferred shares

___________________________________________________________
 
 
___________________________________________________________
G.    Accounting Changes


1.      Did the company report a change in accounting principle or any accounting errors for either of the years?

YES                     NO

If yes, briefly describe the nature of the accounting change.
 
H.    Ratios
 
1.      Calculate the following financial ratios (show your calculations):
 
a)      Current Ratio
 
b)      Acid test Ratio
 
 
c)      Debt to Total Assets
 
 
d)     Return on Assets
 
e)      Return on Equity
 
f)       Price Earnings Ratio 
代写BUSI 222accounting practices