Select a company that you will review for your Course Project. Select the most current copy of the company's 10-K annual report. Notify your professor which company you have selected for your project.
Week 7: Based on the requirements below, submit to your professor your paper that analyzes specific elements of the company's financial statements.
Objective
Objective: To analyze the financial statements of a publicly traded company
Obtain an annual report from a publicly traded corporation that is interesting to you. Be sure the company's financial statements include deferred taxes, postretirement benefits, dilutive securities, and share-based compensation.
Using techniques you have learned in the previous weeks, respond to the following questions.
What amount of deferred tax assets or deferred tax liabilities are on the two most recent years on the balance sheet? What gives rise to these deferred taxes? What information is disclosed in the footnotes related to deferred taxes? Please define a deferred tax asset and deferred tax liability.
What temporary and permanent differences does the company disclose in their footnotes? What are some other examples of temporary and permanent differences?
What is the amount of income tax provision in the two most recent years on the income statement? What information is disclosed in the footnotes relating to income tax expense? Does the company have a net operating loss carryforward or carryback? What are the guidelines for carryforwards and carrybacks?
Does the company have a defined benefit or defined contribution plan? What are the key elements of the plan discussed in the footnotes? What amounts on the balance sheet relate to this plan? What are the differences between defined benefit and defined contribution plans?
Does the company have leases? If so, what are the amounts and terms of the leases? What are the five tests to determine if a lease is a finance lease? What is the difference between a sales-type lease and a direct-financing lease?