Financial Analysis

In this assignment, you are asked to analyze an annual financial report (called a 10K for a U.S. public company), which might be one of the following:

• Publicly traded company (e.g., Pearson Annual Report) [Recommended database is company website; or Edgar: https://www.sec.gov/edgar.shtml
• Charter school company [via Google search]
• Non-profit organization Recommended database is GuideStar: https://www.guidestar.org/

 Identify and discuss the following in a 3-page paper:

Part A: The Income Statement

• What it the name of the organization and source (URL) for the annual report?
• What are the major sources of income for the organization?
• What is the breakdown of each source of revenue as a percentage of total income?
• What are the costs?

Part B: The Balance Sheet

• How much does the company have in cash and short-term investments?
• Look at the cash against current liabilities? What are the current liabilities? Does the company have enough cash to pay off its short-term debt (current liabilities)?
• What is the companys working capital? (Hint: you have to calculate this. Refer back to Module 1 Learning Object for help.)
• What is the companys current ratio? What does this mean?
• What is the companys debt-to-equity ratio? What does this mean?