Homework help completing this attached assignment
ACCT 212 Individual Learning Project Instructions This project will allow you the opportunity to explore a company’s annual report and become familiar with the items it contains. Choose a company from the list below for the subterm in which you are enrolled. Locate the most recent annual report, either from the Liberty University library’s access to Capital IQ NetAdvantage (S&P) database, the EDGAR database (http://www.sec.gov/), or the company’s website. Once located, open Individual Learning Project Questions document and add your answers underneath each question. Do not delete the questions. Questions 1–49 must be answered with Microsoft Word. Your answers for these do not need to be in complete sentences. Questions 50–52 must be answered in Microsoft Excel and your answers must include formulas. Questions 53–55 must be answered with complete sentences and justification within the Word document. Both documents (Word and Excel) must be uploaded into the Assignment link. Company Selections by Subterm: Fall B Darden Restaurants Inc (DRI) General Mills Inc (GIS) La-Z-Boy Inc (LZB) Ralph Lauren Corp (RL) Spring B Costco Wholesale Corpoation (COST) Walt Disney Co (DIS) Starbucks Corporation (SBUX) Tyson Foods Inc (TSN) Summer B Best Buy Co Inc (BBY) General Motors Company (GM) Coca-Cola Co (KO) Macy’s Inc (M) Fall C FedEx Corporation (FDX) Nike Inc (NKE) Oracle Corporation (ORCL) Sysco Corporation (SYY) Spring C Deere & Company (DE) HP Inc (HPE) Hormel Foods Corp (HRL) Zillow Group Inc (ZG) Summer C Lands End Inc (LE) Lowe’s Companies Inc (LOW) Target Corporation (TGT) Yum! Brands Inc (YUM) Fall D Campbell Soup Co (CPB) Estee Lauder Companies Inc (EL) Microsoft Corporation (MSFT) Proctor & Gamble Co (PG) Spring D Levi Strauss & Co (LEVI) Southwest Airlines Co (LUV) McDonald’s Corp (MCD) Synnex Corporation (SNX) Summer D Bed Bath & Beyond Inc (BBBY) Chipotle Mexican Grill Inc (CMG) Ford Motor Company (F) Gap Inc (GPS) To access the Liberty University Library online resources from off campus: · From the Blackboard log-in page, right-hand side “Quicklinks” pull-down menu -- choose “Library.” · Click log-in button. Off-site access cannot be gained unless the user successfully completes the log-in. · This must take you to the “Library Research Portal”; if not, click on “Portal.” · Click on the “databases” tab. · Click on the “Databases by Letter,” and select the letter “C.” · Scroll down until you see “Capital IQ NetAdvantage (S&P).” · Click on the link and then you may begin your search. This assignment is due by 11:59 p.m. (ET) on Monday of Module/Week 7. Bal Sht Kraft Foods Group, Inc. Consolidated Balance Sheets (in millions of U.S. dollars) Common Size AnalysisHorizontal Analysis December 27, 2014December 28, 201320142013$ Change% Change ASSETS Cash and cash equivalents$ 1,293$ 1,6865.63%7.28%$ (393)-23.31% Receivables (net of allowances of $21 in 2014 and $26 in 2013)1,0801,0484.71%4.53%323.05% Inventories1,7751,6167.74%6.98%1599.84% Deferred income taxes3843601.67%1.56%246.67% Other current assets2591981.13%0.86%6130.81% Total current assets4,7914,90820.88%21.20%(117)-2.38% Property, plant and equipment, net4,1924,11518.27%17.78%771.87% Goodwill11,40411,50549.70%49.70%(101)-0.88% Intangible assets, net2,2342,2299.74%9.63%50.22% Other assets3263911.42%1.69%(65)-16.62% TOTAL ASSETS$ 22,947$ 23,148100.00%100.00%$ (201)-0.87% LIABILITIES Current portion of long-term debt$ 1,405$ 46.12%0.02%$ 1,40135025.00% Accounts payable1,5371,5486.70%6.69%(11)-0.71% Accrued marketing5116852.23%2.96%(174)-25.40% Accrued employment costs1631840.71%0.79%(21)-11.41% Dividends payable3243131.41%1.35%113.51% Accrued postretirement health care costs1921970.84%0.85%(5)-2.54% Other current liabilities6414792.79%2.07%16233.82% Total current liabilities4,7733,41020.80%14.73%1,36339.97% Long-term debt8,6279,97637.60%43.10%(1,349)-13.52% Deferred income taxes3406621.48%2.86%(322)-48.64% Accrued pension costs1,1054054.82%1.75%700172.84% Accrued postretirement health care costs3,3993,08014.81%13.31%31910.36% Other liabilities3384281.47%1.85%(90)-21.03% TOTAL LIABILITIES18,58217,96180.98%77.59%6213.46% Commitments and Contingencies (Note 11) EQUITY Common stock, no par value (5,000,000 shares authorized; 601,402,816 shares issued at December 27, 2014 and 596,843,449 at December 28, 2013)- 0- 00.00%0.00%- 0 Additional paid-in capital4,6784,43420.39%19.16%2445.50% Retained earnings1,0451,2814.55%5.53%(236)-18.42% Accumulated other comprehensive losses(562)(499)-2.45%-2.16%(63)12.63% Treasury stock, at cost(796)(29)-3.47%-0.13%(767)2644.83% TOTAL EQUITY4,3655,18719.02%22.41%(822)-15.85% TOTAL LIABILITIES AND EQUITY22,94723,148100.00%100.00%(201)-0.87% [Source: 10-K, page 36] Inc Stmt Kraft Foods Group, Inc. Consolidated Statements of Earnings (in millions of U.S. dollars) For the Years EndedCommon Size AnalysisHorizontal Analysis December 27, 2014December 28, 201320142013$ Change% Change Net revenues$ 18,205$ 18,218100.00%100.00%$ (13)-0.07% Cost of sales13,36011,39573.39%62.55%1,96517.24% Gross profit4,8456,82326.61%37.45%(1,978)-28.99% Selling, general and administrative expenses2,9562,12416.24%11.66%83239.17% Asset impairment and exit costs(1)108-0.01%0.59%(109)-100.93% Operating income1,8904,59110.38%25.20%(2,701)-58.83% Interest and other expense, net(484)(501)-2.66%-2.75%17-3.39% Royalty income from Mondelez International- 0- 00.00%0.00%- 0 Earnings before income taxes1,4064,0907.72%22.45%(2,684)-65.62% Provision for income taxes3631,3751.99%7.55%(1,012)-73.60% Net earnings$ 1,043$ 2,7155.73%14.90%$ (1,672)-61.58% [Source: 10-K, page 34] Ratio RatioFormulaCalculation Liquidity and Efficiency Current Ratio= Current assets / Current liabilities1.00 Acid-test ratio= Cash + Short-term investments + Current receivables / Current liabilities0.50 Accounts receivable turnover= Net sales / Average accounts receivable, net17.11times Inventory turnover= Cost of goods sold / Average inventory7.88times Days' sales uncollected= Accounts receivable, net / Net sales * 36521.65days Days' sales in inventory= Ending inventory / Cost of goods sold *36548.49days Total asset turnover= Net sales / Average total assets0.79times Kraft Foods has low liquidity, with a current ratio of 1 and an acid-test ratio of 0.5, although this is in line with industry standards. Kraft Foods is also not very efficient, with inventory turnover of 7.88 times, which is well below the industry average of 11.15 times, and total asset turnover of .79 times compared to an industry average of 1.76 times. Solvency Debt ratio= Total liabilities / Total assets0.81 Equity ratio= Total equity / Total assets0.19 Debt-to-equity ratio= Total liabilities / Total equity4.26 Times interest earned= Income before interest expense and income taxes / Interest expense3.90times Kraft Foods has very high debt and debt-to-equity ratios. Times interest earned of almost four times means that there is not an immediate risk of default, but the company is very highly leveraged, which is risky for investors. Profitability Profit margin ratio= Net income / Net sales6% Gross margin ratio= Net sales - Cost of goods sold / Net sales27% Return on total assets= Net income / Average total assets5% Return on common stockholders' equity= Net income - Preferred dividends / Average common stockholders' equity22% Book value per common share= Shareholders' equity applicable to common shares / Number of common shares outstanding$ 7.43 Basic earnings per share= Net income - Preferred dividends / Weighted-average common shares outstanding$ 1.76[Weighted Average shares outstanding found in 10-K, Note 14] Kraft Foods has strong profitability. Profit margin of 6% and return on total assets of 5% are both more than double the industry averages of 3.5% and 2%. Return on equity of 22% is significantly stronger than the industry average of 7.9%. Market Prospects Price-earnings ratio= Market price per common share / Earnings per share50.14times Dividend yield= Annual cash dividends per share / Market price per share2.4%[Dividends per share found on Income Statement] Kraft Foods has a high P/E ratio at 50 times earnings, indicating that high growth is expected [this is likely because of the merger with Heinz that had been announced by the time Kraft Foods shares stopped trading]. A dividend yield of 2.4% is a strong return for investors interested in income. Graph QuarterHighLow Q3 2013$ 58.76$ 51.20 Q4 2013$ 55.93$ 51.72 Q1 2014$ 56.56$ 50.54 Q2 2014$ 60.24$ 55.47 Q3 2014$ 61.10$ 53.33 Q4 2014$ 64.47$ 53.63 Q1 2015$ 90.61$ 60.28 Q1 2015$ 91.32$ 82.94 KRFT Stock Price by Quarter HighQ3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q1 201558.7655.9356.5660.2461.164.4790.6191.32LowQ3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q1 201551.251.7250.5455.4753.3353.6360.2882.94 KRFT Stock Price by Quarter HighQ3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q1 201558.7655.9356.5660.2461.164.4790.6191.32LowQ3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q1 201551.251.7250.5455.4753.3353.6360.2882.94 Your Name_______________________________ ACCT 212 Individual Learning Project Questions Name____Example____________ General Information: 1. What is the name of your corporation? Kraft Foods Group 2. Where are the corporate headquarters? Northfield, IL 3. What is the corporation’s fiscal year end? 12/27/2014 4. What are the primary products or services of the corporation? “We manufacture and market food and beverage products, including cheese, meats, refreshment beverages, coffee, packaged dinners, refrigerated meals, snack nuts, dressings, and other grocery products.” [10-K, page 1] 5. Graph the high and low price of the company’s stock for each quarter of the last two years. What was the high and what was the low? The high was $91.32; the low was $55.93 [https://finance.google.com/finance/historical?cid=667819950492168&startdate=Jul%201%2C%202013&enddate=Jun%2030%2C%202015&ei=LFsPWuCyONPEmAGh2YDgDw&start=0&num=30. For existing companies, Yahoo Finance is a better option though, because you can group the historical prices by month rather than by day, meaning you only have to look at 3 lines to determine the overall high/low instead of 65 lines] 6. Who is the company’s transfer agent and where are they located? Wells Fargo Bank, N.A. [Definitive Proxy Statement, page 70; some companies will include this in the 10-K, or there are websites where you can look it up as well – www.stai.org is a good one] 7. Who are your company’s competitors? Large national and international companies and numerous local and regional companies, generic products and retailer brands, wholesalers, and cooperatives [10-K, page 4] Market Information: 8. On which stock exchange is your corporation’s stock traded? NASDAQ [10-K, page 1] 9. What is the current market price of their stock? $88.19 [This is the final stock price before the merger with Heinz – found on Kraft’s website, although for current companies, it will be available on almost any financial website] 10. What is the ticker symbol used to identify your corporation on the stock exchange? KRFT Internet Information: 11. What is the Internet address of your corporation? Be sure it appears as a hyperlink. www.kraftheinzcompany.com [This is the current web address, it would have been different before the merger] 12. Is the corporation’s Annual Report online? Yes [It is available in many places – the company’s website