Finance project

REQUIRED: WRITTEN PROJECT

the company i’ve choose is Zara, another one is H&M.

1. Obtain the most recent annual report for two companies that operate in similar industries. The
   reports should contain at least three years of income statement data and two years of balance
   sheet data.
2. Analyze at least 3 (three) items on the income statement for your base company that would
   be important to an investor, and discuss whether your company’s performance related to
   these items appeared to be improving, deteriorating, or remaining stable. Justify your answer.
3. Analyze at least 3 (three) items on the balance sheet for your base company that would be
   important to an investor, and discuss whether your company’s performance related to these
   items appeared to be improving, deteriorating, or remaining stable. Justify your answer.
4. Analyze your base company’s investing and financing activities for the most recent year as
   identified in the statement of cash flows, specifically identifying the two largest investing
   activities and the two largest financing activities. Discuss whether you agree or disagree with
   the investing and financing strategies that your company appears to be employing.
5. Identify 2 (two) items not included in (or derived from) the financial statements that you
   think would be important to someone considering whether to invest in your company.
   Discuss your reasons for believing that these two items about the company would be
   important in making an investment decision.
6. Compare your base company’s financial statements with those of the second company. If
   were making a decision to invest in one of the two companies, which company would you
   choose? Why? (Note: your answer in this section must include some financial issues, but
   your answer need not be limited to a discussion of financial issues.)
7. Note:
   1. You must electronically submit the entire annual report for each company being discussed.
   2. Your analysis must include page references to relevant portions of the annual reports, and
      the relevant portions of the annual reports must be highlighted. Your report must also contain
      appropriate quotation marks for quoted material and appropriate citations for material taken
      from sources outside the financial statements.
   3. Your analysis is limited to 6 (six) pages, and must be typed, double-spaced, and be at a 12-
      point font.