Ethan Allen Interiors Inc. (ETH)

Introduction:
This Financial Statement Analysis Project (“FSAP”) will be completed in Phases throughout the entire semester. The project is worth up to 70 of the 400 total points available for the semester as indicated in the course syllabus. Phases 1 and 2 will be completed individually. The remainder of the project will be completed in teams of not less than three or more than four students. Please play nicely with others. Teams can be comprised of students from either class section. Accepting a grade for work done by others is stealing. Providing a grade to students who do not participate in the project is lying and just stupid.
Project Scenario:
You are working for the Center for Quality Analytical Data (CQAD, pronounced see-kwad). The mission of CQAD is to provide useful financial information and meaningful objective analysis of such information to a variety of users including, colleges and universities, investors, potential investors, creditors, customers, suppliers and employees. In order for the CQAD to be profitable now and in the future, we are committed to providing the highest quality product to our clients. When working in teams, anything less than professional quality work is simply unacceptable. And will be graded accordingly.
Phase 1B
6) Read Items 2, 3, 4, 4A, 5, 9, 9A and 9B of the form 10-K for the company you selected as your primary company. (Ethan Allen Interiors Inc. (ETH))

7) Prepare a summary of the relevant information contained in each of the items identified in step 6.

8) Obtain the closing stock price for your company’s common stock on the filing date identified above and the stock price on or about that same date for each of the previous 5 years. You will end up with 6 data points so that a 5 year CAGR can be determined. DO NOT USE THE DATA INCLUDED IN ITEM 5 OF THE 10-K. Obtain the dividend history for the company’s common stock during the past five year period

9) Prepare a CQAD memorandum summarizing the information presented in Parts 1 and 2 of the report on Form 10-K EXCLUDING Items 6, 7, 7A and 8. Include a table or graph (with data points) indicating the closing stock prices obtained in step 8 and a summary of the dividend history of the company

Recommendations for obtaining SEC filings

NEVER, EVER, EVER USE FINANCIAL INFORMATION FROM YAHOO OR ANY OTHER FREE ON-LINE PROVIDER OF FINANCIAL INFORMATION. You get what you pay for.
Go to the investor relations page of your company’s web site.
[Google: Company Name – Investor Relations]
Search for SEC Filings. Sometimes this is found on a Financial Reports or Financial Reporting tab.
There will normally be a Filing Type drop down box listing, Quarterly, Proxy, Insiders and Annual. Select Annual.
You will see several annual filings listed in order of filing date. You are looking for the Form 10-K.
Download the PDF version of the 10-K. DO NOT USE THE EXCEL VERSION. If you would prefer to use an Excel spreadsheet prepared by someone other than you, change your major and give me the name of the person who does better Excel work than you. I may want to hire them.
If you decide to print out the 10-K, DO NOT PRINT THE EXHIBITS (other than the financial statements if they are included as exhibits). Exhibits often include legal contracts which add little value to our analysis and kill lots of trees.
AVOID USING THE SEC’s EDGAR site for obtaining annual reports. In the late 1980’s EDGAR was light-years ahead of everyone in electronic document storage and retrieval. EDGAR has not changed much.
AVOID USING THE COMPANY’S ANNUAL REPORT TO SHAREHOLDERS (ARS). This is a public relations tool. Lots of happy, women, children and minorities doing very green things to make the world a happier, friendlier, kinder, gentler, safer and better place for you, your children and grandchildren, and those less fortunate all around the world, . . . . and their pets.