Format and clean your statements up if needed so they look nice and are easier to work with.

Pick a company. Something in manufacturing is ideal, but retail would work as well. For this exercise, you want a firm that has inventory and some accounts receivable. Please avoid banks and other financial services firms. Download the financial statements (income statement, balance sheet, statement of cash flows) from finra.org. You should be able to download 5 years of annual statements for each one. Format and clean your statements up if needed so they look nice and are easier to work with. Calculate a Free Cash Flow for each years using Net Cash Flow from Operating Activities – Capital Expenditures. Graph the Free Cash Flow to look for any trends. Calculate cost of goods sold, selling, general and administrative expenses, accounts receivable, inventory, and accounts payable as a percentage of revenue for each year. Are the percentages fairly consistent across time or were there major changes? Calculate the firm’s cost of equity using CAPM. You can find the beat on the FINRA site or calculate your own. *USE FORMULAS AND FORMULA TEXT*