Reference no: EM131918641
Question: Introduction and purpose: The financial reporting project (FRP) for this term requires that you explore and analyze the annual report and other financial information for two major corporations. This semester we will focus on the 2016 annual reports for Abercrombie & Fitch Co. and American Eagle Outfitters, Inc. companies.
The main purpose of the FRP is for you to be exposed to "live" financial information in its most accessible formats. You will immediately notice that the terminology and presentation styles vary from company to company. You will have an opportunity to recognize, utilize, and apply the accounting concepts you have learned in class and from what you have read from your book. A second purpose of the FRP is to give you the opportunity to explore some of the financial and business resources that are readily available to the public. Because of the nature of this course, the FRP has been designed to take advantage of Internet resources.
You can try and request some copies of printed annual reports to get a sense of what the printed material looks like. Annual reports have personalities- and I think that shows through more clearly in the printed material. A company may mail you a copy, free of charge (not as common today, since you can get it online). Use the resources discussed below to get the investor relations telephone number or email address. You may want to request hard copies- they are not necessary but can be very convenient.
2016 Annual Reports for: Abercrombie & Fitch Co.
American Eagle Outfitters, Inc.
Review the FRP syllabus under FRP at the class website
From the Annual Reports: 1. What is the official name and headquarters (city) of the corporation?
2. What is the page number of the (consolidated) balance sheet? Use the report number not the acrobat number.
3. What is the page number of the (consolidated) income statement? (2pts). Use report not abode page number
4. What is the page number of the (consolidated) statement of cash flows? use report, not adobe page number
5. What is the page number of the statement of shareholders equity? Use report number, not adobe.
6. Most Companies truncate (drop zeros) from the numbers on the financial statements. At the top, they tell you how many zero's they dropped. For example, if they say "in thousands", 3 zeros should be added to the numbers. Prove the accounting equation for each company, and add the right number of zeroes to each number.
7. What is the corporation's consolidated net income for the most recent annual report year. Income or Loss?
8. Who is the corporations's independent auditor?
9. What was the largest current asset on the financial statements?
10. What was the largest current liability on the financial statements? From hoovers.com or finance.yahoo.com or other, just tell us your source.
11. Check out each company's stock price today. Give me the price, the date and the source.
12. Read a recent news story about each of the companies. Briefly summarize what you learned. (Just a sentence or 2- but tell me where it came from and the date). (1pt each)
13. Read footnote 1- List the business the companies are in.
14. Read the footnote on other accrued liabilities for Abercrombie and see the consolidated balance sheet for American Eagle- List 4 accounts for them for each company and explain what it means to be an accrued liability.
15. Read the footnotes, how does each company recognize Revenue? Explain how this is consistent with the accrual method of accounting.
Information related to above question is enclosed below:
Attachment:- FINANCIALREPORTINGPROJECT1word.rar