THE FINANCIAL REPORTING PROJECT

This project involves an in-depth analysis of a publicly traded company, and a comparison to its peers in the industry. The project will be completed in groups of 3-4 students. Your instructor will form groups in the first few weeks of the semester. The following list is a sample of the type of companies which may be assigned:

Apple Computer,
Microsoft
Intel
Pfizer
Pepsi
IBM
Johnson & Johnson
Proctor & Gamble
Wal-Mart
Dell Computer
Home Depot
Lowe’s Home Improvement
Target
Walgreen
JC Penney
Best Buy
CVS
Barnes and Noble
Borders

As soon as your group is formed and a company assigned, your group must obtain a copy of your company’s latest Annual Report or 10-K. You can do this by downloading and printing the documents from your company’s website or from the EDGAR database at the Securities & Exchange Commission (www.sec.gov).

The project is completed in two phases. The first phase emphasizes a basic understanding of the company and the business and economic environment in which it operates. It also requires that you obtain an understanding of the information provided in the Annual Report or 10-K. The final phase involves computation of ratios and financial analysis, including an investment recommendation. At the conclusion of the final phase, you will also evaluate each member of your group by completing the evaluation form included in this packet.

The report is completed in two phases so that the entire work on the project is not deferred until the end of the term. Further, by turning in two reports, you will obtain timely feedback from your professor that will help you improve your performance in the final report. Each progress report requires a group leader to coordinate the work. Rotate your group leader for each progress report.

Based on past experience, the following procedures will help you maximize your performance in the project:

Each group member should independently complete the…