Analyze The Financial Statements Of A Publicly Traded Company (Coursework Sample)
To analyze the financial statements of a publicly traded company
Obtain an annual report from a publicly traded corporation that is interesting to you. Be sure the company's financial statements include deferred taxes, postretirement benefits, dilutive securities, and share-based compensation.
Using techniques you have learned in the previous weeks, respond to the following questions.
What amount of deferred tax assets or deferred tax liabilities are on the two most recent years on the balance sheet? What gives rise to these deferred taxes? What information is disclosed in the footnotes related to deferred taxes? Please define a deferred tax asset and deferred tax liability.
What temporary and permanent differences does the company disclose in their footnotes? What are some other examples of temporary and permanent differences?
What is the amount of income tax provision in the two most recent years on the income statement? What information is disclosed in the footnotes relating to income tax expense? Does the company have a net operating loss carry-forward or carry-back? What are the guidelines for carry-forwards and carry-backs?
Does the company have a defined benefit or defined contribution plan? What are the key elements of the plan discussed in the footnotes? What amounts on the balance sheet relate to this plan? What are the differences between defined benefit and defined contribution plans?
What are the earnings per share amounts disclosed on the income statement for the most recent year? What dilutive securities are discussed in the footnotes? Please identify and describe other examples of dilutive securities. How do these impact earnings per share?
What kind of share-based compensation does the company have? What was compensation expense for the two most recent years? What are the key elements of this plan discussed in the footnotes? Please identify and describe other types of share-based compensation.
Does the company use the direct or indirect cash flow presentation method? What is the difference between these two methods? How does the cash flow statement agree to the other financial statements?
What investing and financing activities does the company have? What are some other examples of investing and financing activities?
What noncash transactions does the company have on its cash flow statement? What are some other examples of noncash transactions?
Papers must be at least 1,800 words, 7–10 pages in length, double-spaced, in a 12-point font. Include a cover page, table of contents, introduction, report body, summary or conclusion, and works cited.
Even though this is not a scientific-type writing assignment, references are still very important. At least three authoritative, outside references are required (anonymous authors or web pages are not acceptable). These should be listed on the last page titled works cited.
APA citations are required.
All DeVry University policies are in effect, including the plagiarism policy.
The paper is due during Week 6 of this course.
Any questions about this paper may be discussed in the weekly Q & A Forum.
The paper is worth 125 total points and will be graded on quality of research topic, quality of paper information, use of citations, grammar, and sentence structure.
Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc485059014 \h 3Deferred Taxes PAGEREF _Toc485059015 \h 4Income Tax Provision PAGEREF _Toc485059016 \h 5Contribution plans PAGEREF _Toc485059017 \h 6Earnings per share/dilutive securities PAGEREF _Toc485059018 \h 7Share based compensation PAGEREF _Toc485059019 \h 7Cash flow presentation PAGEREF _Toc485059020 \h 8Financing/ investing activities PAGEREF _Toc485059021 \h 8Noncash transactions PAGEREF _Toc485059022 \h 9Conclusion PAGEREF _Toc485059023 \h 10References PAGEREF _Toc485059024 \h 11
Harley Davidson Inc is a US company based in Milwaukee and is one of the leading manufacturer of motorcycles. The company was formerly known as HDI but currently, it is abbreviated as H-D. Also, it is listed in the New York Stock Exchange using the symbol HOG. The company was founded by the Davidson brothers known as Arthur, Walter and William during the first decade of the 20th century and hence the name Harley Davidson Inc. Most American companies collapsed during the era of the great depression. However Harley Davidson Inc was one of the two motorcycle manufacturing companies that survived the depression. The company was facing hard times in regard to its tenure. In addition, Harley Davidson Inc the company survived the stiff competition that such companies face from the Japanese industry. Also, the company made it out of the bad quality era.
Harley Davidson Inc. deals with the manufacturing and selling of heavy weight motorcycles that are above 750cc and made for cruising on highways. The main unique feature of the motorcycles is their design and the exhaust pipe as well. They are generally known as the Harleys and have a tradition like kind of design which gives them a chopper -like look. Apart from the for modern VRSC model family, the other Harley Davidson motorcycles represent the Classic Harley designs. At some point, the company tried to venture into the manufacturing of light weight vehicles but the idea did not turn out to be a success. They gave up the idea after the large sale of the Italian Aemacchi subsidiary during the year 1978. The company advertises it products by using events clubs and various museums (Oosterwal, 2010). As a result, interested parties are able to analyze their motorcycle before making the decision of purchasing one of their products.
Harley Davidson's mission statement is to preserve and perpetuate the company by carrying out regular upgrades and improvements on the company's products as well as the achievement of the financial objectives. The company is determined to add the service or manufacturing ventures that can lead to not only an increase in profits but mainly an increase in value of the organization. The current function of the company is the provision of accessories, motorcycles and services to their clients. In addition, their mission statement includes the provision of products and services that are designed to enhance the company's image and, in turn, attract more customers. As a result, this works as a great way of increasing its market share and especially through a positive word of mouth.
A deferred tax is an asset available in a company's balance sheet which is kept for the future use whenever there is a need to reduce the future's tax expense. It plays a big role in preventing the company from operating under losses in a case whereby the tax expense exceeds the amount that was planned for. The excess tax expense can be as a result of any net loss carryovers. It is important to ensure that there is a 50 percent probability that the general income of the company will be positive in the future before applying the deferred tax asset.
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