1. BP ANNUAL REPORT By: Ricky Rieck Mrs. Crosson ACG2021C

2. Executive Summary BP is in a market with growth ahead. It is one of the leading gas and oil companies and is focusing on increasing brand loyalty by cutting out distributors which will lead to a more profitable organization in the long run. This stock is up for trade in the New York Stock Exchange and is a strong buy. Annual Report Website: –http://www.annualreports.com/HostedData/AnnualRep orts/PDF/bp2004.pdf

3. Introduction Chief executive officer: –The Lord Browne of Madingley Location of home office: –1 St. James’s Square, London SW1Y 4PD, UK Date Ending Fiscal Year –December 31 st Principal Products: –Oil and Gas Main geographic area of activity: –US and Europe

4. Audit Report 1.Independent Auditors –Ernest & Young Sir Ian Prosser, J H Bryan, E B Davis, Jr., H M P Miles, M H Wilson 2.Auditors Opinions: –EPS growth –Done well in respect to the other Oil and Gas industry leaders. –Outstanding performance has led to a 150% salary to some directors.

5. Most recent price of the company’s stock: –$66.60 12 Month Trading Range –52 Week High72.66 –52 Week Low56.60 Dividend per share: –$5.119 as of 06-Sep-05 Buy/Sell/Hold –STRONG Buy Stock Market Information

6. Industry Situation and Company Plans According to Annual Report: –Demands for the good sold at BP and others in the related industry has increased over the course of the year. BP has restructured its’ supply methods to reduce the number of product lines and distributors therefore making BP a more profitable one. According to Three Upgrades In Global Integrated Oil –BP’s recent high exposure to U.S. refining and natural gas prices has upgraded their value to each shareholder. http://news.moneycentral.msn.com/ticker/article.asp?Symbol=US: BP&Feed=FRB&Date=20050927&ID=5145149

7. Income Statement Multi-step Income Statement Gross Profit –2004- $34,196 2003- $29,501 Income from Operations –2004- $352,316 2003- $278-859 Net Income –2004- $15,735 2003- $10,482 The increases in these amounts are due to the increase demands for the recent demand increases for BP’s products.

8. Balance Sheet 2003 Assets=Liabilities + Stockholders’ Equity –$81,457= 16,068 + 65, 389 2004 Assets=Liabilities + Stockholders’ Equity –$74,770= 17,302 + 57,468 The accounts that changed the most was the assets and stockholders equity, the liabilities have remained around the same, this could be due to the growth of the company into new developments.

9. Statement of Cash Flows Cash flows from operations are more than net income for the past two years. The company growing through investments and long lived assets. The company’s primary source of financing is through long-term loans. Cash has increased over the past two years.

10. There are many different policies the auditors follows to make its report: Accounting Treatment System of Internal Control Employee Reporting/Whistleblowing Auditor Independence and Rotation Policy on Non-Audit Services Internal Audit Performance Evaluation Accounting Policies

11. Working Capital: –2003- 117,115 2004- 125,936 Current Ratio –2003- 1.02004- 1.0 Receivable turnover –2003- 7.52004- 7.7 Inventory turnover –2003- 16.82004- 16.3 Financial Analysis Liquidity Ratios

12. Ratios Profit margin: –6.10% Return on assets: –9.6% Asset Turnover- –1.7 Return on equity: –24.40%

13. Solvency Ratio –2003-.6262004-.635 Financial Analysis Solvency Ratio

14. Price/earnings per share –12.4 Dividend yield –3.3 2004 Financial Analysis Market Strength Ratios