- Post the name of your company in the SEC 10-K company for your instructors approval in the SEC Project: Request a Corporation to study (REQUIRED posting) during Week 1. All parts of the discussion must be answered in your post.
- Each student must select a different company, so read the company names selected by classmates. Also, your selected company must be ranked 500 or higher on the Fortune 500 list of industrial companies.
- Your report should comment on the financial statements for your company as they relate to the information presented through Week 5 discussions for this class, including the notes to the financial statements.
- Do not consider managerial accounting material from Weeks 6 through 8 in your report.
- The report must be submitted in Week 7 after the Week 6 Peer Review of SEC 10-K Project Required Discussion participation.
1. Write a 2- to 3-page ( a full page typically has at least 300 words) report, single spaced, one-inch margins on the left, right, top, and bottom of each page, 12-point font, with a double space between paragraphs.
2. Please keep your report to no more than 3 pages. A Table of Contents or Abstract is not required.
3. Page count does not include title page, tables and exhibits, and reference list.
4. Title Page. Include a title page which should include the following information and be centered:
The title of your report (SEC 10-K: your company name)
University of Maryland Global Campus
Course number and name, date
5. Body of the paper.
ACCT 221 is not identical to ACCT 220. Discussions continue through Week 5.
Your report should include the following headings: Income Statement, Balance Sheet, Statement of Shareholders Equity, Statement of Cash Flows, and Conclusion.
- Include a brief introduction of your company. There is no heading for the introduction. The first paragraph is assumed to be the introduction. The introductory paragraph should include the name of the company, the state in which it is incorporated, the location of the corporate headquarters, and a brief comment on the product that they offer. This information can be found in the first paragraph of the SEC 10-K.
- Income Statement: For your discussion of the income statement, use the data on the Consolidated Statement of Income (not the Comprehensive Income). The Net Income amount to use is the last amount for income recorded on this statement. The Net Income should be included in the report.
- In this section of your report, include the gross profit margin and net profit margin for 2 years presented in a table similar to the following:
Revenue: $200,000 / 100%
Less: COGS: $175,000/ 87.5%
Gross Profit: $25,000 / 12.5%
Revenue: $175,000 / 100%
Less: COGS: $154,000/ 88%
Gross Profit: $21,000 / 12%
- In the income statement section, comment on what the calculations indicate about the performance of the company. If sales increase, COGS is expected to increase. This is where converting to a percentage gives you additional information.
- Balance Sheet: For the discussion of the balance sheet include the current ratio for 2 years and the working capital for 2 years. Present the calculations in tables similar to the one for the gross profit margin. Compare the current year to the previous year. Make comments on the ratios.
- Statement of Shareholders Equity: Comment on what caused the balance in Retained Earnings to increase or decrease. This information is available on the Statement of Shareholders Equity, not on the Balance Sheet.
- Statement of Cash Flows: Comment on the change in cash from Operating Activities. Has the ending cash balance increased or decreased from the previous year? Comment on how the company used the cash generated by Operating Activities. Did they purchase additional plant assets or did they repay loans and pay dividends? If they purchased additional assets, did they have to borrow in order to make the acquisitions?
- In a chart compare the net cash from Operating Activities, Investing Activities, and Financing Activities to the previous year.
The last paragraph in the body of the paper should be a conclusion.
6. You will also be required to include the Income Statement, Balance Sheet, Statement of Shareholders’ Equity, and Statement of Cash Flows as attachments to your report. They should be inserted in your report before the references. You can cut and paste directly from the SEC 10-K Report. These are considered attachments and are not part of the required page count for the report.
7. The last page should be a list of references. APA style is required for citations and a reference list. Proper format for each reference is as follows:
- Each reference is double spaced with double spacing between each reference.
- The first line of each reference is left justified.
- For each reference, the second line and additional lines are indented (hanging indent).
- These are just the most common errors in format. On the CONTENT page, check
COURSE RESOURCES / WRITING RESOURCES for information on APA format.
Include in text citations. The reference list is the most important. The references needed for your report and Power Point presentation need only be the SEC 10-K link and the course material for this course. They should be cited as follows:
Form 10-K (year) Company Name. Retrieved from
SEC 10-K link.
ACCT 221 7380 UMUC Course Resources (2021). Principles of Accounting II.