Problem

Financial. Reporting and Analysis CasesBroadening Financial Research Skills: Locating Fina...

Financial. Reporting and Analysis Cases

Broadening Financial Research Skills: Locating Financial Information on the SEC’s Database

The Securities and Exchange Commission (SEC) regulates companies that issue stock on the stock market. It receives financial reports from public companies electronically under a system called EDGAR (Electronic Data Gathering and Retrieval Service). Using the Internet, anyone may search the database for the reports that have been filed.

Using your Web browser, access the EDGAR database at www.sec.gov. To search the database, click on “Search” at the top of the page on the right side, type in “Papa Johns” for the company name." and then click on “Find Companies.”

Required:

To look at SEC filings, type in “10-Q” in the space indicating “Filing Type” and click on “Retrieve Selected Filings.” Skim down the left side until you locate the Form 10-Q (quarterly report) filed May 5. 2009. Click on the “documents” for that report, click on the 10-Q document (first item), and skim to the Table of Contents.

1. Click on “Condensed Consolidated Balance Sheets.”

a. What was the amount of Papa John’s total assets for the most recent quarter reported?

b. Did long-term debt increase or decrease for the quarter?

c. Compute the current ratio. How does it compare to the ratio indicated for Papa John’s in the chapter? What does this suggest about the company?

2. Return to the Table of Contents and click on “Consolidated Statements of Cash Flow.”

a. What amount did Papa John’s spend on property and equipment for the period?

b. What was the total amount of cash flows from financing activities?

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