Project #15074 - 10-k

This is a 1-2 page paper... APA Style. It looks like more than it is

The purposes of this project are to:

1.      Access and review a company 10-K or annual required filing with the Securities and Exchange Commission.

2.      Research a company and competitor specified information within the 10-K.

3.      Compute certain liquidity, leverage, profitability, and turnover ratios for a company and competitor.

4.      Analyze results and estimate company business strategies/business models from data gathered and ratios computed.

Requirements:

1.

***you can watch the short 6 minute video about how to find a 10 -k here: http://bellevue.mediaspace.kaltura.com/media/How+to+Search+for+a+Corporate+10-K%283%29/0_v5ugy7ss

2.      Access the Walmart and Target latest 10-K reports through the following SEC search engine link (see audio/video for instructions):

http://www.sec.gov/edgar/searchedgar/webusers.htm

When the latest company 10-K search is done, there are a number of filings making up the 10-K (that is always the case).  For most, the financial statements are included within the first filing listed. When the financial statements are not included within the first 10-K report listed then they are in a supplemental filing that will be listed on the same page.  It is always a very long file.  So if the financials are not within the first 10-K file listed, then look for another large file on the same SEC page.  You can also find them by clicking on the “interactive documents” button.

3.      Compute the following ratios following the formulas reported in the text (if averages are to be used simply add the beginning and ending balances and divide by two):

A.     Current Ratio

B.     Acid Test Ratio

C.     Debt to Equity Ratio

D.     Return on Sales (commonly called the profit ratio)

E.     Return on Equity

F.     Inventory Turnover Ratio

G.    Gross profit ratio – compute this ratio by dividing gross profit by sales.  This shows the average markup on inventory sold.

H.     Asset Turnover Ratio – compute this ratio by dividing sales by the company’s average total assets (not given in text).  This ratio show the extent of revenue being generated from the use of assets – for example, does one company’s stores generate more revenue than that of the other company.

4.      From a source such as Yahoo Finance, report each company’s monthly stock price for the latest six months – use the end of the month stock price as the monthly price.

5.      From the income statements within the 10-K filings report the basic earnings per share amounts for the latest year for each company.

6.      Compute and report the Price/Earnings (P/E) ratio for each company by dividing the current per share stock price by the latest basic earnings per share.

7.      Comment upon the following for Walmart and Target:

A.     A comparison of liquidity based upon the computed current ratio and acid test ratio.

B.     A comparison of debt used to finance operations (rather than equity use).

C.     A comparison of profitability based upon the return on sales, the return on equity, and the earnings per share.

D.     A comparison of the holding periods of inventory based upon the inventory turnover ratio.

E.     A comparison of average markups on inventory sold.

F.     A comparison of revenues generated from assets employed based upon the asset turnover ratio.

G.    A comparison of market expectations of the two companies as shown by the P/E ratios.

8.      From the analysis conducted in requirement seven and your familiarity of the two companies, comment upon potential business strategy (not size) differences between Walmart and Target.

Use the following format:

1.  PROBLEM DESCRIPTION:The first section is the description.  Because everyone in the class has read and analyzed the problem, only those facts needed to introduce the nature of the analysis should be repeated. What are you planning to accomplish by the end of your report?  It should be very short and to the point.

2.  FINDINGS:  In general, you will be expected to answer the questions posed within the problems, demonstrating your understanding of chapter and course materials, constraints, and appropriate procedures and/or strategies.  Did you tap the relevant resources available to gather information, including outside readings and academic (peer-reviewed) literature?  At the masters level, you should be demonstrating critical thinking skills and the ability to reach beyond the basics – think outside of the box.  Critical thinking means that you should continually:

• Question assumptions
• Consider context
• Create and explore alternatives
• Engage in reflective skepticism   (Brookfield, 1987)
• Acquire intellectual resources -- strategies for thinking about a problem or argument -- habits of the mind   (Bailen et al., 1999)
• Appreciate the value of challenging and changing some of your social and emotional interpretations, assumptions and perspectives.
• Judge the quality & value of an argument.

3.  DECISION-MAKING RESOURCES: In the course of determining the solution, we need to use organizational theories, processes and concepts; appropriate procedures and/or strategies; and outside readings and academic literature to help inform our analysis.  This is the most critical part of your paper -- indeed, of every paper you will write in this class.  What has somebody already thought about that might help explain why something happened and/or how we might fix it or come to a plan moving forward?  Your book is filled with helpful theories, processes, and related concepts, but it is only the tip of the iceberg.  There are hundreds of other sources -- texts, journals, authors’ web pages, government web sites, industry standards -- that also provide reliable information and suggest systematic ways of looking at the world.

You should aim for “peer-reviewed” sources.  These are easily found by going to the BU library from the BU login page.  There are a multitude of tutorials available to help you learn how to use the library (See how to use the library in the Assignments area).  Mastering this resource, which will be available to BU graduates for the rest of your lives (super perk), will benefit you throughout your MBA program.  In addition to using scholarly journals (See “Difference Between Journals & Magazines” in the Assignments area), you can also find useful information in The Wall Street Journal, Forbes, Newsweek, various industry publications, and books, but these are not considered "academic" sources, so use them sparingly.

There is no reason to reinvent the wheel -- see what's out there. Read, read, read.  There are several different tools that could apply to every problem.   Your job is to pick a few that make sense, explain in detail how they work, and then explain how they relate to the problem -- how they help to inform your decisions and recommendations to solve the problem.  Remember: Using multiple perspectives, or "triangulation," often leads to a richer solution.

4.  RECOMMENDATIONS:  Based on your findings, what would you recommend?  This should entail both short term and long term implementation of appropriate procedures and strategies.  Short-term:  What do we need to do right now in order to bring the problem under immediate control?  Long-term: What should we do in the next year to solve the problem?  Can we put strategies into place that would prevent this problem from happening again?  What are the constraints of the problem situation?

5.  FALLOUT:  Even if your recommendations are followed to the letter, there are still things that could go wrong. What are they?  Perhaps someone who is offered a promotion will say no.  Maybe the recommended training will not be well-received. What if the economy takes a nose dive, or a major supplier gets wiped out by a hurricane? What international or environmental factors could impact the outcome?

 Subject Business Due By (Pacific Time) 10/23/2013 06:00 pm
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