Company Project Questions:Company is Maccy Inc.
Inventories 1. What is the total dollar amount reported for inventories at the end of the most recent two years? Are inventories increasing or decreasing? 2. What method(s) of inventory costing does the company use? 3. Determine the inventory turnover rate and average days in inventory. 4. Determine the percentage of total assets that the company has invested in its inventories. 5. Did you find anything unusual or interesting about the company's inventories in the notes to the financial statements? Briefly explain.
Cash & Cash Equivalents 1. How much does the company report in cash and cash equivalents for the most recent two years? Does the company report increasing or decreasing amounts on its balance sheet? 2. Determine the company's quick ratio. 3. Refer to the company's statement of cash flows. What is the company reporting for cash provided and used for the three main categories of this statement for the most recent two years? Briefly comment on the significance of your findings. 4. Is the company in compliance with SOX (Sarbanes-Oxley Act) requirements with respect to internal controls over cash? Briefly explain.
Accounts Receivable 1. What is the company’s accounts receivable balance for the most recent two years? Do the amounts indicate an increase or decrease for the two years? 2. What does the statement of cash flows report for increase or decrease in cash for accounts receivable? 3. Does the company employ the allowance method for bad debts? How does the company determine the percentage used for bad debts? What is the percentage used? 4. Does the company factor its receivables? 5. Determine the accounts receivable turnover ratio and average days in accounts receivable for the most recent two years. Briefly comment. 6. Based on your answers to the questions in this section, comment on the company's accounts receivable management policies.
Fixed Assets 1. What is the value of long-lived assets reported on the company's balance sheet for the most recent two years? 2. What method(s) of depreciation are employed by the company? 3. Does the company have any other long-lived assets? Identify them and provide the dollar value for each. 4. Does the company mention any capital leases? Briefly explain. 5. Determine the Return on Assets ratio for the most recent two years. Comment on your results.
Liabilities 1. Breakdown total liabilities into current and long-term amounts for the two most recent years. What trends can you see in the two years? 2. What is the current ratio for the two most recent years? Comment on your results. 3. Does the company have bonds payable? If so, what are the balances outstanding at the end of the two most recent years? What method does the company employ to amortize bond premiums or discounts? When will the bond issues will mature? 4. Refer to Moody's to find your company's ratings. Using the basic information for interpreting Moody's ratings, explain what your company's rating indicates. 5. Determine the percentage of the company's total assets that are financed with debt for the two most recent years. Briefly comment.
Stockholders' Equity 1. Determine the quantity of shares common stock that your company has authorized, issued and outstanding at the end of the most recent two years. Does the company have more than one class of common stock? 2. Does the company have any preferred stock? Is so, use the notes to the financial statements to report details for this class of stock (par value and dividend, participating/non-participating, cumulative/non-cumulative). 3. What are the earnings per share (basic and diluted) reported for the most recent two years. Explain the difference in the method used to calculate the two values. Do you see an increase or decrease in earnings per share (EPS) for the two years? Briefly comment on the significance of the trend. 4. In which state did your company incorporate? Which stock exchange trades your company's stock? 5. What is the current market value of your company's stock? Include the date you used to check market values. 6. What are the company's policies concerning dividend payments to investors? Has the company paid any cash dividends in the most recent two years? Do you see an increasing or decreasing trend in dividend amounts? 7. Did the company declare any stock dividends? Explain the difference between cash and stock dividends. 8. Has your company declared any stock splits during the two most recent years? If so, provide details. 9. Does the company report any Retained Earnings restrictions? Briefly explain the reason for the restriction.
Concluding Comments 1. Summarize your company's performance based on your overall analysis. 2. Do you believe the company is well-positioned to succeed in the current economic situation? To answer this question, you could describe their plans to down-size to improve efficiency or any plans the company has to introduce new products, improve current products, or enter new markets. Some of this information may be found in the President or CEO's letter to the stockholders. Current news releases may be another source. 3. Would you buy the company's stock or bonds? Explain why or why not. 4. Based on your analysis, would you consider working for this company? Briefly explain
