The attachment that I will be posting is a group project…my part of the project will be an annual report for at&t…see attachment for more information about the assig
unit_7_annual_report_team_assignment__mel.docx
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Annual Report Project
To the Student
The Annual Report Project (ARP) provides you the opportunity to analyze a corporate annual report. You
will obtain the annual report of a Fortune 500 company from their company website and
answer questions regarding the application of concepts studied in your financial accounting course.
The Annual Report Project:
• Will increase your interest in financial accounting by allowing you to personally choose the
annual report you will review
• Provides hands-on exposure to financial statements of real-world companies
• Emphasizes the importance of the notes to the financial statements
• Provides an opportunity to examine the application of procedures and methods discussed in your
accounting textbook
• Provide you the opportunity to work remotely with the members of your team
The Annual Report Project consists of four assignments and is designed to be a useful supplement for
undergraduate financial accounting courses. The following is a list of the topics covered in each Annual
Report Project assignment:
•
•
•
•
•
General Information – The Company
ARP 1 Company Information
ARP 2 Overview of the Annual Report
ARP 3 The Balance Sheet
ARP 4 The Income Statement
General Information – The Company
Completed by Team
OBTAINING THE ANNUAL REPORT -You must email your instructor the name of the
company you select as no two teams may use the same company. Make sure your
choice has been approved before you begin.
Obtain the most recent annual report (full annual report, summary reports and 10-Ks are not acceptable)
of a Fortune 500 U.S. corporation (one of the top 500 and must be a U.S. Corporation) which is traded on
a national stock exchange (NYSE, NASDAQ). A useful resource is fortune.com. This site provides links
to the Web sites of Fortune 500 companies. www.fortune.com
Do not select a public utility, financial institution or brokerage firm, insurance company, cooperative, government entity, Coke, Pepsi, Wal-Mart, Kmart, Target or Starbucks as a company
choice. In addition, please note that summary annual reports, 10-K or 10-Qs are not acceptable.
Your team must use a full annual report from a top Fortune 500 U.S. company.
1. Choosing a company
Choose companies in which you are interested. Perhaps the company has been featured in the news
lately. Perhaps you own stock in the company. Perhaps you would like to own stock in the company.
2. Answer the following questions.
Company Name: AT&T
Fortune 500 Ranking (Rank from 1 to 500):#9
Was there a specific reason your group selected this particular company? After researching a few
companies, AT&T had all the qualification we needed to start our project
GUIDANCE FOR Assignments 1, 2, 3 and 4:
Use complete sentences and well-organized paragraphs where needed.
Fill in the blanks, do not rewrite the document.
Each Assignment (1-4) is worth up to 20 points.
Have at least one person complete each section, list their name(s).
Have at least one additional person review each section, list their
name(s).
ASSIGNMENT 1
by
Completed by: Breanna Stevens Reviewed
1. Company Annual Report Date: December 31, 2017
2. Information about the company:
What is the industry classification for the company (according to Fortune)? The industry classification for
AT&T is Telecommunication
Describe the nature of the company’s business.
The nature of AT&T is to connect people with family and friends across the world with an telephone or
internet. The nature of the company is communication
List the company’s primary products or services (use brand names where available). AT&T product and
services are internet services, networking services, voice services, Unified communication and
collaboration, network security, mobile services, and mobile plans and device.
What is the address of the company’s corporate headquarters?
AT&T headquarters 208 S. Akard St. Dallas, TX 75202
What is the address of the company’s Web site?
The companies website www.att.com
List other countries in which the company operates: Other countries AT&T operates in is Mexico and
Canada, Latin America AT&T operates in over 135 countries
What were the company’s revenues for the most recent fiscal year (year and figure)?
AT&T revenue for 2017 is $160.546B
Who is the chairman of the company’s board of directors? The Chairman of the AT&T board of directors
is Randall L. Stephenson.
Who is the company’s CEO? The CEO of AT&T is Randall L Stephenson.
3. Provide the following market data:
On what stock exchange is the company’s stock traded?
NYSE is where AT&T stock is traded.
What is the ticker symbol for the company?
AT&T ticker symbol is T.
What was the price of the company’s stock at the end of one day during this past week?
Price: $30.82M Date: 3/1/2019
What were the lowest and highest stock prices during the past year?
52-week low: 26.80 M 52-week high: $37.81M
4. Obtain a recent (within 9 months) article about the company. Attach
a copy of the article
with your submission (not a link). Do not place article within this document.
Name of article:” AT&T Shares Sink To Six Year Low On Flagging Wireless Growth”
Source of article (name of magazine or newspaper, date, page numbers):
By Scott Moritz
July 24, 2018, 4:30 PM EDT Updated on July 25, 2018, 10:19 AM EDT
Bloomberg page 1
Summarize the article and include an opinion on the article topic.
Use complete sentences, well-organized paragraphs and an introduction and conclusion. Your summary
should be no fewer than 100 words in length and no more than 350 words. This is a summary, do not
rewrite the article. Make sure all important points are included in your summary as well as your opinion
or comment on the article.
ASSIGNMENT 2
Completed by
Reviewed by
OVERVIEW OF ANNUAL REPORT
Annual Report Date: _______________________
1. THE ANNUAL REPORT WILL CONTAIN SEVERAL SECTIONS:
a. FINANCIAL HIGHLIGHTS. This section provides a summary of selected financial results over a
number of years. You may find two schedules providing highlights: one brief summary near the front of
the annual report and a more detailed summary in the financial section.
This second schedule may be called Five-Year Summary of Selected Financial Data.
Note its page number here. Page(s) ______
b. THE CHAIRMAN’S LETTER. This letter provides the chairman’s overview of the past year and
developments which will affect the next year. You will review this letter below. Page(s) ______
c. THE COMPANY, ITS PRODUCTS, ITS EMPLOYEES. This section may contain a number of
color photographs and will highlight the products and accomplishments of the company. Pages_______
d. MANAGEMENT DISCUSSION AND ANALYSIS. This section discusses operating results,
industries in which the company operates, financing and investing activities, significant events, trends and
developments. Page(s)________
e. THE FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS.
This section contains the four financial statements introduced in chapter 1. The accompanying notes, as
indicated at the bottom of each of the above statements, are an integral part of the financial statements.
The financial statements cannot be understood without reference to the notes.
The financial statements and accompanying notes will be the focus of your Annual Report Project .
Income Statement
Balance Sheet
Statement of Stockholder’s Equity
Statement of Cash Flows
Notes to the financial statements:
Summary of significant accounting policies
Inventories
Plant assets
Long-term debt
Page______
Page________
Page______
Page______
Note #_____ Page_______
Note #_____ Page_______
Note #_____ Page_______
Note #_____ Page_______
Income taxes
Employee benefit plans
Commitments and contingencies
Note #_____ Page_______
Note #_____ Page_______
Note #_____ Page_______
f. MANAGEMENT REPORT ON INTERNAL CONTROL Page_______
g. THE INDEPENDENT AUDITOR’S REPORT:
REPORT ON INTERNAL CONTROL
REPORT ON THE FINANCIAL STATEMENTS
Page_______
Page_______
2. REVIEW THE CHAIRMAN’S LETTER TO THE SHAREHOLDERS.
Summarize the major points made in the letter. Use complete sentences and well-organized
paragraphs, your summary should be no less than 100 words and no more than 350 words in length.
Page(s) on which letter appears (make sure it matches the page number listed above): _____
Locate the management report(s) and the independent auditor’s report(s). Page(s) _________
Answer the following questions.
a) Who is responsible for the preparation and integrity of the financial statements?
b) Does the company maintain a system of internal controls? Why?
Summarize their system of internal controls:
c) Does the company have an audit committee? ______
What is its purpose of the audit committee?
d) What is the name of the independent public accountant (auditor)?
(Note: There are two independent auditor’s reports: (1) a report on internal control and (2) a report on the
financial statements. The following questions relate to the financial statement audit.)
e) According to the auditor’s report on the financial statements, what is the auditor’s responsibility?
f) According to the audit report, what is an audit?
g) Summarize the auditor’s opinion.
ASSIGNMENT 3
Completed by
Reviewed by
THE BALANCE SHEET
1. Locate the company’s balance sheet.
Balance sheet date: __________________
Page on which balance sheet appears: _________
2. The accounting equation is Assets = Liabilities + Stockholders’ Equity (remember that a balance
sheet balances). Replacing the words in the accounting equation with dollar amounts; give the
company’s accounting equation at the end of the current and prior years. If the amounts are listed
in millions, make sure you state this.
Assets =
Date for This year ________________
Liabilities
+
Equity
Equation figures: (A)_______________ = (L)______________ + (E)_______________
Date for Last year ________________
Equation figures: _______________ =______________ +_______________
3. Calculate the company’s current ratio for both this year and the prior year.
Show your computations and then the result. Present the figure correctly; each ratio has a specific
format.
The Equation for current ratio is: ___________________
This year: = ___________________ (show your work) = ____________ (result)
Late year: = ___________________ (show your work) = ____________ (result)
Explain what information this ratio provides. (Hint: See the Financial Statement Analysis chapter of your
textbook.) Use complete sentences.
Has the current ratio improved or worsened? Explain your answer and add your comments on the results.
Use complete sentences.
4. Calculate the company’s working capital for both this year and the prior year.
Show your computations and then the result. Present the figure correctly; each ratio has a specific
format.
The Equation for working capital is: ___________________
This year: = ___________________ (show your work) = ____________ (result)
Late year: = ___________________ (show your work) = ____________ (result)
Explain what information this figure provides. Use complete sentences.
Has the result improved or worsened? Explain your answer and add your comments on the results. Use
complete sentences.
5. Calculate the company’s debt to total assets ratio (also called total debt to equity) for both this
year and the prior year.
Show your computations and then the result. Present the figure correctly; each ratio has a specific
format.
The Equation for debt to total assets ratio is: ___________________
This year: = ___________________ (show your work) = ____________ (result)
Late year: = ___________________ (show your work) = ____________ (result)
Explain what information this ratio provides. Use complete sentences.
Has the ratio improved or worsened? Explain your answer and add your comments on the results. Use
complete sentences.
ASSIGNMENT 4
Completed by
Reviewed by
THE INCOME STATEMENT
1. Locate the company’s income statement.
Income Statement Date: __________________
Page on which income statement appears: _________
What is the period covered by the income statement? _________________________
2. How does the net income for this year compare to last? What caused the change, use the notes to
the income statement to support your reason?
3. What are the accounts (not totals, but accounts i.e. net income is a total, wage expense is an
account) that catch your attention compared to the previous year’s income statement? List at least
3 and briefly explain why you selected each one. (Total Expenses or Net Income are not accounts,
they are totals or labels for totals.) Explanation must say more than the figure increased or
decreased, why would that be of interest?
1.
2.
3.
4. What could explain the changes from one year to another for each account selected in number 2?
Your answer explains the why it changed, not how much it changed. Your reasons must be
supported by data provided in the company’s annual report.
1.
2.
3.
5. Calculate the company’s Profit Margin for both this year and the prior year.
Show your computations and then the result. Present the figure correctly; each ratio has a specific
format.
The Equation for Profit Margin is: ___________________
This year: = ___________________ (show your work) = ____________ (result)
Late year: = ___________________ (show your work) = ____________ (result)
Explain what information this result provides. Use complete sentences.
Has the result improved or worsened? Explain your answer and add your comments on the results. Use
complete sentences. Use the annual report notes to support your reason.
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