Case Project
Using the list of companies included in this assignment, select two companies within the same industry and analyze the financial strengths and weaknesses of both companies. Your research is to be completed on the Internet and must include the following information and answers to the following questions:
I . A brief profile of each company, this should include the primary business and locations of both companies (abstract).
2. Using the Income Statement and Balance Sheet found at zacks.com (or anywhere else) complete a Horizontal Analysis for both companies.
3. Using the Income Statement and Balance Sheet found at zacks.com (or anywhere else) calculate liquidity, solvency and profitability ratios for both companies.
4. Using the information calculated in parts 2 & 3, identify the financial strengths of each company – be sure to compare and contrast both companies. Answer the following questions: Is one stronger than the other in particular areas? What areas? Is this a trend that has continued or is this something that has recently been improved?
5. Identify those financial areas that could be improved – again be sure to compare and contrast both companies. State how you would improve them if you were part of the management of the company.
6. Identify the future growth plans of both companies.
7. Would you invest in either or both of the companies? If you had an investment in either or both of the companies – would you sell it? Why or why not?
8. Would you be willing to lend either or both of the companies money? Why or why not?
9. Include any other information you feel is pertinent to your analysis.
10. Include the financial statements for both companies from the zacks.com (or anywhere else) website. Attach copies (or put in the text) of the Balance Sheet, Income Statement and Statement of Cash Flow from the Annual Report to your assignment; cutting and pasting is satisfactory.

Suggested websites:

http://www.Bobbrinker.com – this site provides a myriad of links to various websites and should be your starting point. There are many company profiles along with educational sites to learn various aspects of investing and finance. You do not need to be a member or sign up for anything; ask for a free newsletter.

http://www.WSRN.com – this site provides company information, financial ratios, and links to Zack’s Financial Statements and company home pages. The links without the $ are free, don’t access the links with $ as these are not free.

http://www.zacks.com – this site has the Income Statements and Balance Sheets that you must access. Enter the stock symbol, mark “all reports” and choose the Annual Income Statement or Annual Balance Sheet.

http://marketguide.com – this site provides company profiles, selected ratios, and industry comparisons for those ratios. Enter stock symbol – company information will come up on the screen, from here click on Ratios to obtain the Industry Ratio comparison.

http://www.yahoo.com – this site provides company profiles, links to company home pages, and links to the Market Guide Ratio Comparisons. Enter stock symbol, when the quote appears on the screen, click profile.

Paper Requirements:

This is a group project – 2 to 4 people in each group- you form your own group. It must be typed. Your bibliography should include the address of all web sites used. The grade will be based upon content and its completeness, however, writing style (APA 6), adherence to the assignment, grammar, punctuation, and spelling will be considered in grading. I will not put any marks on your paper but will enclose a separate hand written sheet with comments and grading points. I grade your paper and I read each one myself. This assignment is due at the beginning of class FCC on 9 May (Monday) 2016.

The stock symbol follows the name of the company (information updated March 2015).

Retail Apparel Stores Abercrombie and Fitch Co.- ANF; American Eagle Outfitters – AEO; Ann Taylor Stores Corp. – ANN; GAP Inc. – GPS; Pacific Sunwear of California – PSUN;
Collective Brands – PSS; Ross Stores Inc. – ROST; Talbots Inc. TLB.

Textiles – Apparel Liz Claiborne Inc. – LIZ; Phillips-Van Heusen Corp. – PVH

Retail Department Saks Inc – SKS; Sears Roebuck & Co. – SHLD

Retail – Electronics Stores Best Buy Co. Inc. – BBY; Radio Shack – RSH (check latest)

Computer Hardware – Personal Computers Apple Computer Inc. – AAPL; Dell Computer Corp. – DELL

Audio & Video Equipment Industry Phoenix Gold Int’l Inc. – PGLD; Universal Electronics Inc. – UEIC; Harman Int’l Industries – HAR

Restaurant Industry Papa John’s Int;l, Inc.- PZZA; Schlotzsky’s Inc. – BUNZQ;

Heafthcare Facilities Coventry Health Care Inc. – CVH; Sunrise Senior Living – SRZ

Software Microsoft – MSFT; Intuit Inc. INTU; Oracle Corporation – ORCL

Casinos & Gaming Trump Hotel/Casino Resort – TRMPQ; Boyd Gaming Corporation- BYD;

Toys and Games – Mattel – MAT; Hasbro – HAS; Marvel Enterprises – MVL; Midway
Games – MWYGQ

Guidelines for two company financial reports:

• Resources: Internet or other resources (Google or company web sites); annual reports for the companies of your choice.

• Select companies for analysis by your team that have been (1) profitable for the last three fiscal years, (2) are not banks/financial institutions, and (3) are on a major U.S. Stock Exchange.

• Attain instructor approval of the selected companies if not on the list.

• For reference, acquire a copy of the selected companies’ most recent annual reports by using the Internet or other resources.

• You might want to prepare an Executive Summary, which is not required, using the information contained in the company’s balance sheet and income statement, answering the given questions. There is no minimum or maximum number of pages. You may answer the questions in a narrative; you don’t need to list numbers and address them in a list. A table of contents is a big plus.

• There is no set format to this assignment; use your imagination and surprise your instructor.

• Format your assignment according to APA 6 standards (check online sources).