Each student should select a corporation that has the following requirements:
• Publicly traded company (must trade stock on the NYSE, etc.)
• Manufacturing company (must produce a product, not a service)
• Headquartered in the U.S. (not an internationally-based company)
Using the company’s most recent audited financial statements and annual report along with everything you have learned in this course, you will present the company to the class, which will be full of “potential investors” thinking about possibly investing in this company, which we know nothing about. Introduce your company to us, highlighting important financial information, and providing us with as much info as possible to help us decide if this is a company we would want to invest in or not, and why. You must substantiate your recommendation with factual and accurate data.
Your presentation should be approximately 5-6 minutes long, and PowerPoint should be used. Make it informative, but also interesting. Points will be awarded on: 1) required financial info presented (verbally, along with supporting financial documentation), 2) your recommendation to potential investors supported by valid data, and 3) creativity.
1. Minimum required information to be covered/discussed:
a. Company background
ii. Recent activities in the news
b. Balance Sheet
i. Total Assets
1. Inventory – LIFO or FIFO method (or other)
2. Fixed Assets, Intangible Assets, Natural Resources
3. Depreciation method used (straight line or other)
ii. Total Liabilities
1. Bonds Payable (interest rate, maturity value, etc)
2. Notes Payable/long-term debt (interest rate, collateral, due date, etc)
iii. Total Equity
1. Common or Preferred Stock (par value, dividends paid, etc)
2. Shares authorized, issued, outstanding
3. Treasury Stock
4. Retained earnings
c. Income Statement
i. Net sales/revenue
ii. Cost of Goods sold
iii. Gross profit/margin
iv. Gross profit/margin ratio
v. Net income (loss)
d. Statement of Cash Flows
i. Operating activities
ii. Investing activities
iii. Financing activities
iv. Net change in cash
e. Financial ratios
iii. Working capital
iv. Current ratio
vi. Other ratios if relevant
f. Notes to the Financial Statements – anything interesting from these?
i. Contingent liabilities? Potential lawsuits?
ii. Recent mergers or acquisitions? New product lines?
g. Other information in Annual Report – anything interesting from this?
i. Chairman, Board of Directors
ii. Auditors report – audit firm used
h. Investor’s summary – would you invest in this company, why or why not? You must substantiate your recommendation with valid supporting data!
2. Be sure to include a paper copy of the balance sheet, income statement, statement of cash flows, statement of changes in stockholders’ equity, and any pages from the annual report and notes that were used in the presentation above. Also show your calculations for any ratios used. If I can’t verify it in writing, you will not receive credit for it.
3. It can be entertaining, creative, and fun, but it still needs to be professional.