Your culminating project this semester will involve preparing a financial report for Boise Cascade Company. This assignment is due in Module 07, but you should begin gathering information now. This week I want you to go to the U.S. Securities and Exchange Commission website, and in the stock symbol space type in BCC. That is the stock symbol for Boise Cascade Company. You can also access the information using the company’s CIK Cap Number: 0001328581. File 001-35805. Access 10K filing on 2/26/2019 in the SEC documents. In a separate window, open Yahoo Finance, and search for BCC. This will provide additional information on the company. Once you have the information for Boise Cascade Company on your screen do th Your culminating project this semester will involve preparing a financial report for Boise Cascade Company. This assignment is due in Module 07, but you should begin gathering information now. This week I want you to go to the U.S. Securities and Exchange Commission website, and in the stock symbol space type in BCC. That is the stock symbol for Boise Cascade Company. You can also access the information using the company’s CIK Cap Number: 0001328581. File 001-35805. Access 10K filing on 2/26/2019 in the SEC documents. In a separate window, open Yahoo Finance, and search for BCC. This will provide additional information on the company. Once you have the information for Boise Cascade Company on your screen do the following: Go to the S.E.C. Filings and open the 10K (full report, not summary) that was filed on February 26, 2019 and make notes on the following: What business is the firm involved in? Where does it have business locations? When and where was it formed? What is its fiscal year end? What were any significant acquisitions during the past three years? Review generally the financial statements (we will analyze them in much detail later.) Who is the firm’s auditor? What type of opinion did they receive? Was there any significant litigation? Just browse through the entire 10K. Who are the company’s main competitors? Who are the insiders? Who are the major shareholders? Is there any other information that you think will be relevant to your understanding of the company? Return to the U.S. Securities and Exchange Commission website, and open the ten K (full document) for year end– December 31, 2018. In a separate window, open Yahoo Finance and pull up the information on Boise Cascade Company (BCC). Perform the following tasks: Read in detail the balance sheet, income statement, statement of shareholders’ equity, and the statement of cash flow. Note any significant changes between years 2016, 2017, and 2018. Pay particular attention to financing and investing activities in the statement of cash flows. Read all of the footnotes and make notes of any significant items. Calculate the E.B.I.T. and E.B.I.T.D.A. for each year. You will be using this information extensively in the next module so you may want to print them off so you have a hard copy to refer to. Using financial statements for the year-end– December 31, 2018– complete the following computations for 2016, 2017, and 2018 (where the information is available for 2016 year): Quick ratio Current ratio Accounts receivable turnover and days outstanding Inventory turnover and days on-hand Accounts payable turnover and days outstanding Operating cycle Cash conversion cycle Total debt to total equity Equity multiplier Times interest earned Gross profit margin percentage Operating margin percentage Net margin percentage Return on assets Return on equity DuPont computation for return on equity Please also note any significant trends. Now go to the Yahoo Finance website. In the “Quote Lookup” search window, look up “BCC.” Go to the “Competitors” section of the Yahoo Financial information for Boise Cascade Company. Compare the operating margin percentage and the net margin percentage to the competitor’s results appearing in the competitors section. You may need to return to the U.S. Securities and Exchange Commission website to access 10K information for Boise Cascade Company’s competitors. Return to the U.S. Securities and Exchange Commission website and open the 10K (full document) for year-end– December 31, 2018. A review of the income statements in the 10 K for Boise Cascade Company for the years 2016, 2017, and 2018 show an increase in revenue, but a decline in net income. This is very substantial. Why is it happening? The best way to analyze it is to prepare common-size income statements, including percentage, and then analyze the percentage as a function of revenue. An example can be found in Exhibit 4-2, on page 86 of the text. You may also find it helpful to refer to the company information on the Yahoo Finance website. Prepare a statement for Boise Cascade and then analyze it relative to significant trends to see if you can identify the problem areas. Return to the U.S. Securities and Exchange Commission website and open the 10K (full document) for year-end– December 31, 2018. You may also find it helpful to refer to the company information on the Yahoo Finance website. Compute the after-tax cost of capital for Boise Cascade Company. Ignore unamortized financing costs. Information relative to rates appears in the footnotes to financial statements. Use a 15% cost for shareholder equity. Return to the U.S. Securities and Exchange Commission website and open the 10K (full document) for year-end– December 31, 2018. You may also find it helpful to refer to the company information on the Yahoo Finance website. Examine the firm’s sources of working capital, including operations and working capital loan agreements. Describe any loan covenants that are contained in the term loan agreements. Compute the working capital for 2017 and 2018 and discuss any trends that may appear. This week go to the U.S. Securities and Exchange Commission website, and open the 10K (full document) for year end– December 31, 2018. You may also find it helpful to refer to the company information on the Yahoo Finance website. Review the Statement of Cash Flows, and review the footnotes to the financial statements that appear in the 10K. Also, review any information relating to stock splits and stock repurchase programs. Take notes on this information and prepare to include it in your final analysis. Using the information you have gathered this semester, prepare six to eight-page report describing whether or not the Boise Cascade Company is a good investment. It should include a one-page executive summary describing your position, followed by a discussion of your findings, conclusions, and recommendations. Backup your recommendation with information from credible sources. Charts and graphs are a plus. Before you finish, make sure to proof-read your work out loud. I strongly recommend you have someone (a friend, spouse, study group) review your report before you submit it. Spelling and grammar errors will count against you, and you’ll want to make sure that your report is understandable. You may want to contact the Boise State University Writing Center to help you with your report. When you are finished, use the link below to submit your report.
