COMPANY IS FOOTLOCKER!
One to two full in pages in length: single spaced; 12 pt. font. One Inch margins. In your own words.
If you create any small charts they will count for page space. Goal: tell the story of your company in the parameters described below.
Each of the five projects requires you to map out your message, for your supervisor, illustrating your mastery of concepts from our course as they relate to your SEC 10-K Company. Consider this as your employer. As a starting point, for project two:
Your SEC 10-K company should have accounts receivable and inventory. Who owes money to your Sec 10-K company? How is the inventory described? For these questions read the Notes to the Financial Statements presented immediately after the financial statements. This is usually part of section 8 of the SEC 10-K. Section 7 is Management and Analysis (M&A). Section 15 is often referenced as financial exhibits.
Using the resources of our course materials consider the concept of days sales in Accounts Receivable (AR) and Inventory. It is easier, particularly with the limited information presented, to use the ending balance of inventory or AR and not the average balance. This should allow you to compare this year to last year. Some companies require and analysis these values each month.
The formula: Sales / 365 = Sales Per day
Divide Accounts Receivable ending balance by sales per day. The answer: day’s sales in AR.
For Inventory, Cost of Goods Sold / 365 = sales per day (at our cost).
Divide Inventory ending balance by sales per day. This answer: day’s sales in Inventory
Consider how these values are changing. Also review changes in sales and C of GS values from year to year as well as changes in AR and Inventory. Read the SEC 10-K for examples of how to write about dollar values such as $123 million.
These are important skills!