Your summative involves the analysis of a public Canadian corporation with shares trading on one of the Canadian stock exchanges. You are required to complete an in depth, written report on a corporation of your choice. Manufacturing, merchandising and service companies are suggested. Bank, trust, and insurance
companies should be avoided as their accounting policies are beyond the scope of this course.
It is expected that you will use a number of resources to investigate your company including the internet.
Annual reports, investor information, product/service information are among the many areas often addressed on corporate web sites. Once a company Is chosen, its web site should be reviewed in detail in order to obtain an overview of the company and its financial situation. In addition to the company website information, you are required to obtain a hard copy of the company's latest annual report. In some cases, this can be requested through the website and, in other cases, you may have to contact the company directly. You may want to
Consider obtaining copies of the last three annual reports for comparative analysis. Your annual reports must be submitted with the written report.
Additional sources of information for this project include (but should not be limited to the following;
Additional information provided by the company
Newspaper/periodical articles (i.e. Canadian Business and Macleans) Dun and Bradstreet Industry Average Ratios
Accounting texts (Corporate Accounting and Financial/Ratio Analysis Sections) Government or industry publications
Your summative must be typed. The annua
l report, ratio calculations, charts, graphs etc, are not part of the
written report and should be included in an appendix after the written report. There is no limit on the lengt of the appendix.
Requirements for The Written Report: Your written report should contain the following sections:
1. An Introduction
This information Includes a summary of general information about the company. This Information is Usually contained in the company's annual report and should Include, but not necessarily be limited to, the following Items:
The name of the company and location of its head office;
The name of the chairman of the board of directors, the chief executive offices, chief operating officer, president and two directors;
A brief description of the organizational structure of the company (ie_ its divisions, subsidiaries, etc) and their locations
The name of the firm which audited the financial statements and a brief summary, in your own words, of the accounting firm's opinion;
A brief summary of the significant accounting policies followed by the company (i.e. depreciation method, inventory valuation etc.)
Do not simply list this information. Using subtitles, put this section together in two or three coherent paragraphs You may wish to add additional information as well.
2. Company Profile
This section should include:
• A brief history of the company
• A brief summary of corporate objectives and its mission statement.
• A description of the products sold and/or services performed
3. President/C.E,O/Chairman's Report
• Based on this section of the annual report, summarize, in your own words, the contents of the chief
4. Environmental Analysis
Prepare an analysis of intangible factors and current events that may affect the company's current and/or
future performance. Consider the company's competition (direct and indirect), the state of the economy both
national and global, any provincial or fedderal legislation; current government policy, taxation laws, and current social and technological trends. What opportunities and/or threats do these factors play on the future of the company? What changes, if any, based on this information alone, should the company consider to remain
profitable and competitive.
5. Financial Analysis (See Chapter 17)
a. Comparative Analysis
Complete a comparative balance sheet and income statement comparing the results of the current and
previous year using the Horizontal/Trend analysis technique as well as the Vertical Analysis technique The comparative statements should be set up the same way as any other financial statements you would complete. Briefly discuss your assessment of these findings/results.
See pages 730-761
b. Ratio Analysis
In this part of the report, you are to prepare a neatly drawn table summarizing selected ratios and measurements for the last two years.
Use at least five of the following ratios in your analysis:
Current (or Working Capital) Ratio,
o Quick Ratio,
o Inventory Turnover,
o Debt Ratio
o Equity Ratio,
o Times Interest Earned Ratio,
o Rate of Return on Net Sales, and
o Rate of Return on Owner's Equity.
The calculations for your analytical review should be included in your appendix.
Based on the two previous sections, along with the trends and/or significant changes d iscussed in the
environmental analysis, provide an assessment of the financial condition of the company.
The annual report, ratio calculations, charts, graphs etc, are not part of the written report and should be included in an appendix after the written report. There is no lim it on the length of the appendix.
7. Bibliography or list of works cited.
See attachment for examples of correctly cited work. You should also use parenthetical notation whenever your quote directly, or use ideas or opinions taken from your reference materials.
NOTE: Some of the data may be difficult to obtain or may not apply to the company you have chosen. in such cases, answer as much as you can or state that the item is not applicable and provide reasons. The more
popular the company you select, the easier it will be to obtain the information required. Please be sure to have your company approved by the teacher.https:gteslanomicsxoftesla-2018-results-and-2019-outlook/