Posted: December 15th, 2016

Is company growing and expanding or shrinking/consolidating? 3. Use trend % in the analysis

Introduction: ½ – 3 /4 page 1. Introduce the company to the reader 2. Assume that the reader knows nothing about the company. 3. Include: a. Industry: NAICS code b. Product or services the co sells c. Customers: B2B, B2C, teens, adults, kids, etc. d. Location: headquarters, market location e. Website f. Competitors g. Size: Accounting values: net income, total assets, total sales h. Stock information i. Exchange where traded ii. Ticker iii. Price per share 2. Analysis of the Balance Sheet 1) Sources of funds: Liabilities & Owners Equity a) Identify the two or three specific sources each year. b) Report the % 2) Uses of funds: Assets a) Identify two or three specific uses of funds b) Report % 3) Does the distribution make sense given the kind of company? 4) Focus on the % from Common Size analysis 5) Reference the common size balance sheet (first exhibit that you attach) 3. Analysis of the Income Statement 1) Significant Expenses a) One or two top expenses b) Does the distribution make sense for the type of company you are evaluating? 2) Is the company is profitable 3) Focus on the % from Common Size analysis 4) Reference the common size income statement (second exhibit that you attach) 4. Trend analysis 1. Change in a. Assets b. Revenue c. Income 2. Is company growing and expanding or shrinking/consolidating? 3. Use trend % in the analysis 4. Reference the trend sections on the balance sheet and the income statement. 5. Note: should not compare the trends to each other