Reading and Using the Annual Report Case Study

Read Chapters 1 and 2 in your course textbook, Porter, G., & Norton, C. (2018). Using financial accounting information: The alternative to debits and credits (10th ed.). Retrieved from https://www.cengage.com

Select a company of interest that trades on the New York Stock Exchange (NYSE). The annual report can be found on your selected company’s website, usually under the heading “Investor Relations.” Select a company that a fellow student has not already posted. Note that you will use this same company for future discussions in this class.

Retrieve the latest two annual reports, then complete the following:

  • Calculate the current ratio and profit margin ratio for the latest two years, and interpret the results. Then, explain what the ratios over the 2 years tell you.
  • Locate the Management Discussion and Analysis comments in the latest annual report, and discuss the main points in your own words.
  • Locate the Auditor’s Report in the latest annual report, and discuss the opinion given and who conducted the audit.
  • Based on this initial quick review, provide your assessment of your chosen company.

Your initial response should be a minimum of 200 words.

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