1.Obtain the most recent annual report for two companies of your choice.
The reports should contain at least three(3) years of income statement data and two (2)
years of balance sheet data.2. Analyze at least 3 (three) items on the income statement for each company that would beimportant to an investor and or user of the financial information, and discuss whethereach company’s performance related to these items appeared to be improving,deteriorating, or remaining stable over the two years. Justify your answer.3. Analyze at least 3 (three) items on the balance sheet for each company that would beimportant to an investor and or user of the financial information, and discuss whethereach company’s performance related to these items appeared to be improving,deteriorating, or remaining stable over the two years. Justify your answer.4. Analyze each company’s investing and financing activities for the most recent year asidentified in the statement of cash flows, specifically identifying the two largest investingactivities and the two largest financing activities. Discuss whether you agree or disagreewith the investing and financing strategies that each company appears to be employing.5. Identify 2 (two) items not included in (or derived from) the financial statements that youthink would be important to someone considering whether to invest in each company.Discuss your reasons for believing that these two items about the company would beimportant in making an investment decision. (Hint: you might want to consider itemsdiscussed in other business classes.)6. Compare the results you obtained above for both companies. Based on the analysis doneby your group on the financial statements, if you were making a decision to invest in oneof the two companies, which company would you choose? Why? (Note: your answer inthis section must include some financial issues, but your answer need not be limited to adiscussion of financial issues.)Note:1. You must submit the entire annual report for each company being discussed. (These canbe submitted in electronic format)2. Your analysis must include page references to relevant portions of the annual reports, andthe relevant portions of the annual reports must be highlighted. Your report must alsocontain appropriate quotation marks for quoted material and appropriate references formaterial taken from sources outside the financial statements.