Obtain 2010-2016 annual reports from a corporation of your choice (excluding regulated industries such as financial and utilities industries). Obtain the relevant authoritative literature using the FASB Accounting Standards Codification (aka FASB ASC); you can gain access at this website (http://www2.aaahq.org/ascLogin.cfm Username: AAA53336 Password: 5D8MyhF) .Using knowledge you obtained from chapters 13 and 14 and any analysis you consider useful, respond to the following questions: 1. Prepare Appendix 1 as follows and attached it to the very end of your memo: Tyson Food Inc. (in millions) 2010 2011 2012 2013 2013 2015 2016 Total Liabilities Total Shareholders’ Equity Net Income Average Total Assets Averages Shareholders’ Equity EBIT= Net Income + Interest + Taxes (or Cash Flow From Operation) Interest Expense 2. How has the amount of total liabilities reported in the balance sheet changed over the fiscal years 2010-2016? 3. Compute the debt to equity ratio for fiscal years 2010-2016. How has the proportion of debt financing and equity financing changed over years? The average ratio for the stocks listed on the New York Stock Exchange in a comparable time period was 1.0. Is the corporation experiencing favorable or unfavorable financial leverage (Hint: calculate and compare the return on assets and return on shareholders’ equity)? 4. Compute the times interest earned ratio (use EBIT or Cash Flow from Operations divided by Interest Expense) for fiscal years 2010-2016. Assume the coverage for the stocks listed on the New York Stock Exchange in a comparable time period was 5.1. What does your calculation indicate about the corporation’s risk? 5. Does the corporation generally obtain more financing through notes, bonds, or commercial paper? Are required debt payments increasing or decreasing over time (Hint: check out aggregate required payments of maturities of long-term debt for the next five fiscal years shown in the footnotes to the financial statements)? 6. Is any short-term debt classified as long-term in the 2016 annual report and why? Obtain the relevant authoritative literature on classification of debt expected to be financed using the FASB ASC. Determine the criteria for reporting currently payable debt as long- term. What is the specific codification citation that the corporation would rely on in applying that accounting treatment (an example of a proper citation reads as follows: [FASB ASC 220-25-45])? 7. Based on the above analysis, how would you conclude on the corporation’s default risk and make recommendation to the corporation’s CEO? Note: You can obtain electronic copies of annual reports from EDGAR (Electronic Data Gathering, Analysis, and Retrieval; http://www.sec.gov/edgar/searchedgar/companysearch.html). EDGAR performs automated collection, validation, indexing, and forwardi.

1. Obtain 2010-2016 annual reports from a corporation of your
choice
(excluding regulated industries such as financial and utilities
industries).
Obtain the relevant authoritative literature using the FASB
Accounting
Standards Codification (aka FASB ASC); you can gain access at
this
website (http://www2.aaahq.org/ascLogin.cfm
Username: AAA53336
Password: 5D8MyhF) .Using knowledge you obtained from
chapters 13
and 14 and any analysis you consider useful, respond to the
following
questions:
1. Prepare Appendix 1 as follows and attached it to the very end
of your
memo:
Tyson FoodInc. (in
millions)
2010 2011 2012 2013 2013 2015 2016
Total Liabilities
Total Shareholders’
Equity
Net Income

2. Average Total Assets
Averages
Shareholders’ Equity
EBIT= Net Income +
Interest + Taxes (or
Cash FlowFrom
Operation)
Interest Expense
2. How has the amount of total liabilities reported in the
balance sheet
changed over the fiscal years 2010-2016?
3. Compute the debt to equity ratio for fiscal years 2010-2016.
How has
the proportion of debt financing and equity financing changed
over
years? The average ratio for the stocks listed on the New York
Stock
Exchange in a comparable time period was 1.0. Is the
corporation
experiencing favorable or unfavorable financial leverage (Hint:
calculate
and compare the return on assets and return on shareholders’
equity)?
4. Compute the times interest earned ratio (use EBIT or Cash
Flow from
Operations divided by Interest Expense) for fiscal years 2010-

3. 2016.
Assume the coverage for the stocks listed on the New York
Stock
Exchange in a comparable time period was 5.1. What does your
calculation indicate about the corporation’s risk?
5. Does the corporation generally obtain more financing through
notes,
bonds, or commercial paper? Are required debt payments
increasing or
decreasing over time (Hint: check out aggregate required
payments of
maturities of long-term debt for the next five fiscal years shown
in the
footnotes to the financial statements)?
6. Is any short-term debt classified as long-term in the 2016
annual
report and why? Obtain the relevant authoritative literature on
classification of debt expected to be financed using the FASB
ASC. Determine the criteria for reporting currently payable debt
as long-
term. What is the specific codification citation that the
corporation
would rely on in applying that accounting treatment (an
example of a
proper citation reads as follows: [FASB ASC 220-25-45])?
7. Based on the above analysis, how would you conclude on the
corporation’s default risk and make recommendation to the
corporation’s CEO?
Note: You can obtain electronic copies of annual reports from
EDGAR

4. (Electronic Data Gathering, Analysis, and Retrieval;
http://www.sec.gov/edgar/searchedgar/companysearch.html).
EDGAR
performs automated collection, validation, indexing, and
forwarding of
submissions by companies and others who are required by law
to file
forms with the SEC. All publicly traded domestic companies use
EDGAR to make the majority of their filings. Form 10-K, which
includes the annual report, is required to be filed on EDGAR
and the
SEC makes this information available on the Internet. You can
also
obtain electronic copies of annual reports from company
websites
(usually under “Investor Relations”). Do not use quarterly
reports (i.e.,
Form 10-Q).
Write MEMO
Format and Length Guidelines:
The written assignment consists of a memo of no more than
three typed
pages (double spaced, with 12 point Times New Roman font and
a
minimum of 1” margin from all sides) conveying your
recommendation
for the case issues and an explanation/justification for the
recommendation. You can attach as exhibits any computations
or other
analyses used to resolve case issues (but you must refer to these

5. in your
memo); exhibits will not count toward the three- page length.
You
should attach to the very end of your memo Appendix 1 on
which your
computations are based.
1. Memos must be written in proper memo format. This format
is
outlined as follows:
Introduction : Explain purpose of the report and provide set-up
for remainder of paper, including brief overview of contents.
Discussion
• Discussion should follow the stated method of organization
in the introductory paragraph.
• Clearly identify problem/issue at hand.
• Elaborate major points and provide analysis of various
alternatives. This is the main part of the paper.
o Good transitions between points are essential here if
argument is to appear forceful.
o Visual aids such as charts/tables/graphs may be
referenced here, but should be included at the end of the
paper as attachments.
Recommendations : Make specific recommendations based
on
the analysis provided in the discussion.

6. Conclusion : Briefly restate important points/findings here and
reiterate why recommended course of action is best. The
conclusion
should provide some combination of summary, action
recommendation,
and contact information. The writers should sum up the main
points of
the memo as well as explicitly state the reader's next step. Also,
the
writer should offer the reader means of contacting him/her in
case any
questions remain. A telephone number and/or e-mail address
should be
provided.
2. Memo must begin with an introductory paragraph stating the
purpose
of the memo, and end with a brief concluding paragraph. Use
the
following headings for this assignment between the introductory
and
concluding paragraphs:
• Liabilities, financial leverage, and long-term solvency;
• Major sources of financing and future debt payments;
• Certain current liabilities to be refinanced and the accounting
issue;
• Recommendation.
3. Memos must reference any attached exhibits. Exhibits should
be
typed (using MS Word, Excel, Tableau, etc.), and can include
computations or any other analyses that are required in the
assignment

7. and/or that you believe are needed to support arguments
advanced in
your memo. Exhibits do not count toward the memo’s maximum
page
length.
4. The “FROM” line of each memo must include (this part of
the memo
can be single-spaced): -- Names of the authors;