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State in which the company is incorporated




E. I. du Pont de Nemours and Company, (Stock Symbol) symbol DD, year end 12/31/13;Part I ? General (Provide the following);Company Information;a. Name of the company;b. Location of the company?s headquarters;c. State in which the company is incorporated;d. Profile of the company;e. Sector the company is in;f. Industry the company is in;g. Identify at least three major competitors;h. Identify whether or not the company has international operations;Common Stock Information;i. Identify the company?s common stock symbol and the national exchange it is traded on;j. Identify the current market price and date of the company?s common stock;k. Identify the par value for the company?s common stock. How does the par value compare to the market value? Does the par value have any relation to market value?;l. Provide the 52 week high and low value for the common stock (as of 10/31/12).;m. Identify the current dividends on common stock, if any.;n. Define what each of the following terms mean: ?Authorized Shares,? ?Shares Issued,? ?Shares Outstanding,? and ?Treasury Shares.? For the common stock only, show the amounts.;Preferred Stock;o. Does your company have any preferred stock? If yes, repeat i thru m above for the preferred stock.;Part II ? Financial;Ratio Analysis;1. In a single paragraph discuss the purpose of Ratio Analysis, including a discussion on the limitations associated with ratio analysis.;2. Provide the most recent ?values? for the ratios shown below for the latest two years (you will need at least three years of data). Prepare a summary table, as shown on the next page, containing all of the ratios. Show your calculations for each ratio in an appendix at the end of your report. For each ratio, indicate if the ratio has improved or deteriorated from the earlier year to the later year.;3. Before calculating the ratios, describe what each ratio is for.;4. At the end of the table, provide a discussion and conclusion regarding the ratio analysis performed;Ratios;Liquidity Ratios;a. Current ratio;b. Acid Test (Quick) ratio;c. Receivables Turnover;d. Days in Receivables;e. Inventory Turnover;f. Days in Inventory;Profitability Ratios;g. Profit Margin;h. Asset Turnover;i. Return on Assets;j. Return on Common Stockholder?s Equity;k. Earnings per Share (EPS);l. Price to Earnings ratio;m. Payout ratio;n. PEG (you are on your own on this one);Solvency Ratios;o. Debt to Total Assets ratio;p. Times Interest Earned ratio;Cash Flow;q. Free cash flow (associated with the statement of cash flow);Results of Ratio Analysis;(Sample format for performing Ratio Analysis);Ratio Calculated;Company Values Calculated;Company Values Evaluation of Change in Ratio;Type Name Yr. 2012 Yr. 2011 Improved/Deteriorated (and why);Liquidity Current Ratio 2.7: 1 2.4: 1 Improved as a portion of the line of credit was refinanced into long term debt.;Profitability Earnings per Share (EPS) $1.80 $1.65 Improved as net income increased and the number of shares outstanding declined due to stock buybacks.;Horizontal Analysis;1. In a single paragraph discuss the purpose of Horizontal (Trend) Analysis.;2. In Tabular form, calculate changes from one year to the next for selected accounts on the Income Statement using the earliest year as the base year, and indicate what the change means, whether it improved or deteriorated. Perform this analysis for Sales, Cost of Goods Sold, Gross Profit, Operating Profit, and Net Profit.;? The use of an Excel spreadsheet is suggested, to enable the student to improve his/her Excel skills. You can then copy and paste the worksheet into your Word or Power Point document.;3. Provide a summary discussion and conclusions regarding the horizontal analysis performed.;Horizontal Analysis;(Sample format for performing Horizontal Analysis);Account;Name Latest Year;Nominal;Value Earliest;Year;Nominal;Value Nominal Change From Earliest to Latest Year Percent Change From Earliest to Latest Year Improved/Deteriorated;Sales $1,000,000 $900,000 $100,000 11.1% Improved by 11% due to the introduction of new products and price increases, which offset volume declines in the xx segment;Vertical Analysis (Common Sizing);1. In a single paragraph discuss the purpose of Vertical Analysis.;2. In Tabular form, common size each account on the Income Statement, for the two latest years, using the appropriate base. Indicate what the changes mean, whether it improved or deteriorated. The use of an Excel spreadsheet is suggested, to enable the student to improve his/her Excel skills in this area. You can then copy and paste the worksheet into your MS Power Point or Word document.;4. Provide a summary discussion of your findings with respect to Sales, COGS, Gross Profit, Operating Profit, and Net Profit.;Vertical Analysis;(Sample format for performing Vertical Analysis);Account;Name Year 1;Nominal;Value Year 1;Common Size;Value Year 2;Nominal;Value Year 2;Common Size;Value Improved/Deteriorated;Sales $ 900,000 100.0% $1,000,000 100.0% Improved (higher than Yr. 1);COGS $ 660,000 73.3% $ 700,000 70.0% Improved (reduced % of Sales);Gross Profit $ 240,000 27.7% $ 300,000 30.0% Improved (higher % of Sales);Part III - Other;a. Review the Independent Auditor?s Letter and identify the auditing firm. Discuss the purpose of this letter.;b. Review the Chairman?s letter that describes how he/she sees the company. In your own words, summarize the letter?s content and include a discussion of your conclusions regarding the letter.;c. How much reliance can you place on the Chairman?s letter? Why?;Part IV ? In the News;During the course of this project, keep abreast of the financial news affecting your company. Find and print at least 4 articles (2 of which must be press releases) related to your company during this period. For each article, review the article and, in your own words, discuss the content and meaning of each. Provide an appropriate cross reference to the articles in the appendix. Include all articles in the appendix of your report (copy & paste content, or create an image to include in your document).;Part V ? Analyst (Student?s) Opinion;Provide a thorough discussion on whether or not the company is a good one. This should be based on your opinion, which in turn should be based on all of the information you have reviewed for this project.;Part VI ? All references supporting above analysis, properly organized.;Attachment Preview;Accounting 102.docx;Fall 2014;E. I. du Pont de Nemours and Company, (Stock Symbol) symbol DD, year end...


Paper#20469 | Written in 18-Jul-2015

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