FINANCE FOR MANAGERS
Start by reading and following these instructions:
1. Quickly skim the questions or assignment below and the assignment rubric to help you focus.
2. Read the required chapter(s) of the textbook and any additional recommended resources. Some answers may require you to do additional research on the Internet or in other reference sources. Choose your sources carefully.
3. Consider the discussion and the any insights you gained from it.
4. Create your Assignment submission and be sure to cite your sources, use APA style as required, check your spelling.
Answer these essay questions:
1. Go to the website www.sec.gov and find the filings for General Electric (GE). What is the date of the oldest 10-K available on the website for GE. 10-K is the annual report filed with the SEC. Look up the 10-K forms for IBM & Apple and compare the dates of first electronic filing with that of GE. Find out when the following forms are used: Form DEF-14A, Form 8-K, and Form 6-K. Why should investors know about these reports? What is a 10-Q report?
2. Visit Alcoa at www.alcoa.com . Find the most recent annual report and locate the balance sheets for the last two years. Use these balance sheets to calculate the change in networking capital. How do you interpret this number?
3. Chris Guthrie was recently hired by S&S Air, Inc., to assist the company with its financial planning, and to evaluate the company’s performance. Chris graduated from college five years ago with a finance degree. He has been employed in the finance department of a Fortune 500 company since then. Friends Mark Sexton and Todd Story founded S&S Air 10 years ago. The company has manufactured and sold light airplanes over this period, and the company’s products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models, the Birdie, which sells for $53,000, and the Eagle, which sells for $78,000. While the company manufactures aircraft, its operations are different from commercial aircraft companies. S&S Air builds aircraft to order. By using prefabricated parts, the company is able to complete the manufacture of an airplane in only five weeks. The company also receives a deposit on each order, as well as another partial payment before the order is complete. In contrast, a commercial airplane may take 18 months – two years to manufacture once the order is placed. Mark and Todd have provided the following financial statements. Chris has gathered the industry ratios for the light airplane manufacturing industry.