WRITTEN PROJECT
WRITTEN PROJECT
1. Obtain the most recent annual report for two companies in the same industry. The reports should contain at least three years of income statement data and two years of balance sheet data. One company would be the base the second company is used for comparative purposes. Provide a summary of the base company’s industry and operation.
2. Base company – Analyze items on the income statement that would be important and relevant to an investor, and discuss whether your company’s performance related to these items appeared to be improving, deteriorating, or remaining stable. Justify your answer using financial ratios, vertical/horizontal analysis, graphs, etc.
3. Compare your base company’s financial statements with those of the second company in the same industry. If you were making a decision to invest in one of the two companies, which company would you choose? Why? (Note: your answer in this section must include some financial issues, but your answer need not be limited to a discussion of financial issues.)
