DePaul UniversitySchool of Accountancy and MIS
ACC 305 – Intermediate Reporting II
Spring 2023
Financial Statement Analysis Project
The objective of this project is to help students practice the accounting concepts learned in this course and
apply them to a real-world investment decision. The project can be completed individually or as a small
group (up to 4 students). Students are required to do online research on a company of your choice. You will
need to gather background information from the most recent annual report (or similar documents) of the
company you select. Based on information you find, develop a critical analysis of the financial health and
performance of the selected company.
Instructions to Students
The report should be clear, concise, and coherent. In writing the report, you should refer to publicly
available information of the company, quoting references from the sources with page numbers where
appropriate. Remember to use proper citation. Using references from other sources without clear
citation violates the academic honesty code and is subject to University policy and regulations.
The report should be no more than 4 pages (12 pt. Times New Roman font or equivalent) plus any exhibits
and reference, if any. There is no correlation between length of the report and points earned. It is important
to answer all questions directly and please identify the question number in your report.
The deadline of the project is 11:59 pm on May 28, 2023 (Sunday), via the “Submissions” folder in D2L.
Please submit a Microsoft Word or PDF version of the report and name the file
LastName_FirstName_ACC305_FSA.doc/pdf. (either .doc or .docx is acceptable depending on your
version of Microsoft Word).
Instructions on how to find an annual report
Annual reports can be found in multiple ways. Financial Statements of U.S. listed companies can be
obtained from the website of the Securities and Exchange Commission (www.sec.gov). Under the “Filings”
pull down menu, go to “Company Filing Search” where you can search by company name, ticker symbol,
or CIK.
In most cases, and for non-listed companies, you can usually also find the annual report from the company’s
website. They are usually provided under an “About Us”, “Investor Relations,” or similar section.
Part A (60%)
Download and read the most recent annual report (Form 10-K) for your selected company. Based on
information from the annual report and other sources, answer the following questions. Remember to cite
any direct quotations along with page number if you choose to take sections from the annual report.
Quoting phrases/paragraphs directly from the annual report is appropriate (with proper citation), but
you must explain/summarize the text in your own words for full credit.
1. Provide a brief introduction of the company’s history, business structure (including share ownership),
and primary businesses (1/2 page or less).
2. Locate the Independent Auditor’s Report.
(a) Who is the company’s Auditor?
(b) What was the opinion issued by the auditor? How did the auditor come up with that opinion?
(c) Briefly explain what “Critical Audit Matters” are and discuss the critical audit matters identified by
the auditor regarding this audit
3. Answer the following questions by reading the financial statements and accompanying “Notes to the
Consolidated Financial Statements”. If you can’t find pertinent information state that fact in your report.
(a) Under what cost convention is the basis of preparation for the financial statements (e.g. historical
cost, amortized cost, lower of cost or market, fair value)?
(b) List the major categories and amounts of liabilities reported by the company.
(c) How many classes of shares does the company report? Describe the components of contributed
capital versus retained capital for the firm.
(d) How much, if any, did the company pay out in dividends?
(e) How much was EPS and diluted EPS? What is the main difference between the two, if any?
Part B (40%)
Use a financial website (Yahoo finance, CNBC, etc.) to locate the stock price, P/E, and market
capitalization of the company on a recent date. Considering your analysis above and focusing on the
liabilities and equity of the company, comment on whether you think the company is a “good” investment
choice at its current price. Explain your reasoning. In completing this part, imagine you are an analyst at
an investment bank and your job is to analyze whether your bank should invest in the company you
chose.
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