7/30/2019 Project 1 -- Analyzing Financing Activities -- Spring 2013

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Western Washington UniversityFinancial Statement AnalysisMBA 567

Project #1: Analyzing Financing Activities and Capital Structure

This assignment provides an opportunity to examine the financing activities andcapital structure of two firms from the same industry with slightly different competitiveapproaches. The following comments and directions should help you formulate aneffective approach to completing the assignment successfully.

This is an individual assignment. You may ask me questions if you wish, but details ofyour project along with your overall approach should not be discussed with otherpeople.

To help everyone begin, we will devote the last-half of an upcoming class to ageneral discussion of topics to include and organizational strategies. Be prepared tocontribute something to the conversation!

In submitting this assignment, you affirm that your paper represents your original

work; that your effort complies with both the form and the substance of theassignment; and that you have consulted only authorized support materials andsources.

1. This assignment focuses on the recent financing activities of GAP, Kohls, andNordstrom. Based on your individual interest, please select two of these firms to

include in your report. You will find PDFs of the three 2012 Annual Reports on ourcourse Blackboard page.

2. Your analysis should emphasize significant aspects of these firms LT Liability andShareholders Equity disclosures. You should also comment on the quality ofaccounting information provided, accounting policy choices, and measures of risk asthese three issues apply to financing activities.

3. Consider evaluating the relevantportions of the MD&A, the balance sheet, thestatement of cash flows, the statement of shareholders equity, and related financialnotes.

4. The annual report PDFs are quite large. Therefore, I recommend saving the twoyoure using electronically and printing only the pages or sections that you need forthis assignment.

5. You may omit the following topics: consolidations; stock options, employee stock-based compensation, and ESOPs; pensions and other postretirement benefits;deferred taxes; hedges and derivatives; and foreign currency activities.

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7/30/2019 Project 1 -- Analyzing Financing Activities -- Spring 2013

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6. Please observe professional quality standards in preparing your report. You mayuse an outline or bullet format, but you must write in complete sentences. Doublespace between paragraphs and single space within paragraphs. Please usereasonable margins and font sizes as well as standard grammar and punctuation

rules (and footnotes where appropriate).

7. You should be able to present your text and exhibits in 3-4 pages. Please print onboth sides and submit no more than two pieces of paper.

8. You have plenty of latitude in this assignment and, hopefully, just enough direction.If you need clarification, please stop in for a conversation.

9. The 75 points for this assignment will be awarded based on your ability to follow thedirections, the quality of your analysis, and the quality of your presentation.

10.The assignment is due on Wednesday, April 24

th

at class time.

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