Team Project: AnalyzingRevenues andReceivablesAs a team, select an industry to analyze. Re...

Team Project: AnalyzingRevenues andReceivables

As a team, select an industry to analyze. Reutersprovides lists of industries under Sector s and Industries at www.reuters.com. (Click on an industry and then select Company Rankings for a list of members of that industry.) Each team member should acquire the annual report or 10-K for one publicly traded company in the industry. with each member selecting a different company. (Library file s. the SEC EDGA R service at www.sec.gov, or the company itself are good sources.)

Required:

On an individual basis, each team member should write a short reported answering the following questions about the selected company. Discuss any pattern s across the companies that you as a team observe. Then . as a team, write a short reported comparing and contrasting your companies .

1. If your company lists receivables in its balance sheet, what percentage is it of total assets for each of the last three years? If your company does not list receivables, discuss why this is so.

2. Ratio analysis

a.What does the receivables turnover ratio measure in genera?

h.If your company lists receivables, compute the ratio for the last three year s.

c.What do your results suggest about the company?

d.Ifavailable, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs or is similar to the industry ratio.

3. Ifyour company lists receivables, use the IO-K to determine what additional disclosure is available concerning the allowance for doubtful accounts. (Usually the information is ina separate schedule, Item 15.)

a.What is bad debt expense as a percentage of sales for the last three years?

4. What is the effect of the change inreceivables on cash flows from operating activities for the most recent year (that is, did the change increase or decrease operating cash flows)? Explain your answer.