APPLYING ACCOUNTING CONCEPTS TO A REAL-WORLD BUSINESS

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APPLYING ACCOUNTING CONCEPTS TO A REAL-WORLD BUSINESS

This assignment will involve additional research on the company you chose for Discussions 4 and 6. If you decide to change companies, go to the link for Reserving Your Company to reserve your new company after making sure no one else has already reserved it. If you are staying with the company(s) used for Discussions 4 and 6, there is no need to re-reserve it.

You will be comparing the subject company’s total revenues and net income to three of its competitors. Use Standard and Poor’s NetAdvantage or a similar source to select three competitors. Refer to the instructions for Discussion 6 Response for help in using the NetAdvantage database.

REVENUE AND NET INCOME

Go to Yahoo! FINANCE at to find revenue and net income data for the subject company and each of the competitors.

  1. Enter the company’s ticker symbol in the search box and press enter.
  2. You will see blue lettered tabs (you should be on the “Summary” tab); click on the “Statistics” tab (not the “Financials” tab which provides fiscal year data, you are looking for ttm or trailing twelve months [the last 12 months] data which is found in Statistics).
  3. Scroll down to the heading titled “Income Statement” where you will find the Revenue and Net Income Available to Common Shareholders data for this report.

Record the company’s Revenue (ttm) and Net Income Available (Avl) to Common (ttm). (ttm) stands for trailing 12 months. If the data requested isn’t listed, just type NA for not available. All figures should be labeled as dollars. Parenthesis indicates the data is negative and should be reported as such.

GROWTH PERCENTAGES

Use the Key Stats tab (located under the Financials/Valuation heading) on NetAdvantage to find the Total Revenue and Net Income growth rates over the prior 12 months. Take care to use the column on the far right to report the growth rates for the last twelve months (LTM). Note that Net Income growth is listed under the Diluted EPS Excl. Extra Items heading.

EVALUATION

Comment on how the subject company compares to its competitors. To what do you attribute the differences?

EXAMPLE

The Walt Disney Company (subject company)
Ticker Symbol: DIS

Revenue (ttm): $XX.X Billion (from Yahoo! Statistics)

Growth over Prior Year: 0.X% (from NetAdvantage Key Stats)

Net Income Avl to Common (ttm): $X.X Billion (from Yahoo! Statistics)
Growth over Prior Year: X% (from NetAdvantage Key Stats)

Competitor 1: Time Warner Inc.
Ticker Symbol: TWX

Revenue (ttm): $XX Billion
Growth over Prior Year: 0.X%

Net Income Avl to Common: ($XX) Billion
Growth over Prior Year: 0.X%

Competitor 2: NBC (National Broadcasting Company, Inc.)
… Etc. …

Competitor 3: XYZ Company
… Etc. …

Evaluation: Your comments on how the subject company (the one you are researching) compares to its competitors. Details about what you attribute the differences too.

Fundamental Concepts in Managerial Economics

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