As a financial consultant, you have been hired by a wealthy client who wants to invest in a publicly traded company. They are seeking your expertise to analyze and interpret financial statements and information, and to make recommendations based on your comprehensive review.
Choose a publicly traded company that you believe might interest your client and obtain a copy of their most recent annual report (10-K).
Using the information, you have gathered,
• Determine the financial health of your organization by performing the following tasks:
o Analyze the industry.
o List two competitors of the company.
o Assess the importance of business interests in foreign countries (if any).
o Assess how business interests impact accounting-related policies.
• Summarize the accounting processes for short-term liquid assets, long-term assets, current liabilities, long-term liabilities and stockholders’ equity by performing the following tasks:
o Analyze the structure of the business accounting cycle.
o Discuss the company’s bad debt expense.
o Explain how the company recognizes revenue.
o Describe what inventory methods are used.
• Identify a major accounting-related issue the company faces by developing an appropriate technique to solve the quantitative financial accounting problem.