Overview Company Information (Tab 1), and Historical Income Statements, Balance

Overview
Company Information (Tab 1), and Historical Income Statements, Balance Sheets, and Cash Flows (Tabs 2-4)
Instructions
• Choose one of the 3 companies listed in your Instructor’s Module 1: Week 1 Excel Project Announcement.
• Go to the Securities and Exchange Commission’s EDGAR database and access your chosen company’s most recent Form 10-K (annual report). (For help with this process, see the Module 1: Week 1 presentation, “Downloading Financial Statements from the SEC EDGAR Database.”)
• Create an Excel workbook, including data for your chosen company as follows:
o The 1st tab (worksheet) in your Financial Statement Analysis Template must be labeled Company Information. The following information must be included:
▪ Company Name and ticker symbol
▪ Industry
▪ Products or services offered
▪ Major competitors
▪ An example of this tab is provided in Exhibit A.
o The 2nd tab in your Financial Statement Analysis Template must be labeled Historical Income Statements.
▪ Include the latest three years based on SEC filings.
▪ Ensure that the worksheet includes a header with:
• Company Name
• Financial Statement Name (Income Statements)
• Financial Statement Dates
• Denomination level ($s in millions or thousands, etc.)
o The 3rd tab in your Financial Statement Analysis Template must be labeled Historical Balance Sheets.
▪ Include the latest three years based on SEC (10-K) filings. (Note: Some 10-Ks only provided 2 years of balance sheet data. You may need to download the second most recent 10-K for your company in order to obtain 3 years of balance sheet data.)
▪ Ensure that the worksheet includes a header with:
• Company Name
• Financial Statement Name
• Financial Statement Dates
• Denomination level ($s in millions or thousands, etc.)
▪ A partial balance sheet example is provided in Exhibit B.
o The 4th tab in your Financial Statement Analysis Template must be labeled Historical Statement of Cash Flows.
▪ Include the latest three years based on SEC (10-K) filings.
▪ Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:
• Net Income from Income Statement agrees with Net Income on the Statement of Cash Flows.
• Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet.
▪ Ensure that the worksheet includes a header with:
• Company Name
• Financial Statement Name
• Financial Statement Dates
• Denomination level ($s in millions or thousands, etc.)
o Other instructions:
▪ The Excel workbook should be professionally formatted. Professional formatting includes:
• All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.
• Dollar signs are included in the first and last numbers of each column.
• Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.
• All extraneous information is removed from the spreadsheet. Sometimes, files downloaded from the SEC website contains extra characters or other things that need to be deleted.
• Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
▪ All totals and subtotals should be calculated using formulas. For an example of which cells may need formulas, please see Exhibit B.
Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.

Exhibit A: Example Company Information Tab

Exhibit B: Example Historical Balance Sheets Tab
(IMPORTANT NOTE: Only Partial Balance Sheet shown. Your Balance Sheet should include Liabilities and Stockholders’ Equity as well.)

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Competitor #1 Income Statement (Tab 5), Competitor #1 Balance Sheet (Tab 6), Competitor #1 Cash Flows (Tab 7), Competitor #2 Income Statement (Tab 8), Competitor #2 Balance Sheet (Tab 9), Competitor #2 Cash Flows (Tab 10), Historical and Competitor Ratios (Tab 11)
Instructions
• Continue in the same Excel workbook prepared in Module 2: Week 2, adding the following tabs:
o The 5th tab and 8th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Income Statements. (Replace “Competitor Company Name” with the name of the competitor.)
▪ Include the latest three years of income statements for your competitor based on SEC filings.
▪ Ensure that the worksheet includes a header with:
• Company Name
• Financial Statement Name (Income Statements)
• Financial Statement Dates
• Denomination level ($s in millions or thousands, etc.)
o The 6th and 9th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Balance Sheets. (Replace “Competitor Company Name” with the name of the competitor.)
▪ Include the latest three years of balance sheets for your first competitor based on SEC (10-K) filings. (Note: Some 10-Ks only provided 2 years of balance sheet data. You may need to download the second most recent 10-K for your company in order to obtain 3 years of balance sheet data.)
▪ Ensure that the worksheet includes a header with:
• Company Name
• Financial Statement Name
• Financial Statement Dates
• Denomination level ($s in millions or thousands, etc.)
o The 7th and 10th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Cash Flows. (Replace “Competitor Company Name” with the name of the competitor.)
▪ Include the latest three years based on SEC (10-K) filings.
▪ Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:
• Net Income from Income statement agrees with Net Income on the Statement of Cash Flows
• Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet
o The 11th tab in your Financial Statement Analysis Template must be labeled Historical and Competitor Ratios
▪ The list of ratios to be included are as follows. They should be grouped under the headings, as shown:
• Liquidity Ratios
o Current Ratio
o Quick Ratio
• Leverage Ratios
o Debt to Total Assets Ratio
o Debt Equity Ratio
o Long-Term Debt to Equity
o Times Interest Earned Ratio
• Activity Ratios
o Inventory Turnover
o Fixed Assets Turnover
o Total Assets Turnover
o Accounts Receivable Turnover
o Average Collection Period
• Profitability Ratios
o Gross Profit Margin
o Operating Profit Margin
o Net Profit Margin
o Return on Total Assets (ROA)
o Return on Stockholders’ Equity (ROE)
o Earnings Per Share (EPS)
o Price Earnings Ratio
▪ Calculate the ratios for your chosen company for the last three years, linking the ratio calculations back to the historical financial statement tabs (Tabs 2-4) using formulas.
▪ Calculate the ratios for each of your company’s competitors (most recent year only), linking the ratio calculations to the competitor financial statements shown in Tabs 5-10 using formulas.
▪ Using the internet, locate the industry averages for the ratios listed above, and include them in the final column of the ratio tab. Include a footnote on the tab to identify the source of the industry averages.
o Other instructions:
▪ The Excel workbook should be professionally formatted. Professional formatting includes:
• All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.
• Dollar signs are included in the first and last numbers of each column.
• Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.
• Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
▪ All totals and subtotals in the competitor financial statements as well as the ratio calculations should be calculated using formulas.

Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.

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ACCT 370
Exhibit A: Example Historical and Competitor Ratios (Tab 11)
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Common Sized Balance Sheets (Tabs 12), Common Sized Income Statements (Tab 13), Horizontal Analysis Balance Sheets (Tab 14), Horizontal Analysis Income Statements (Tab 15), and Projected Financial Statements (Tabs 16-18)

Instructions

Continue in the same Excel workbook prepared in Module 4: Week 4, adding the following tabs:
o The 12th tab in your Financial Statement Analysis Template must be labeled Common Sized Balance Sheets.
▪ Set-up like the Historical Balance Sheets (Tab 3), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Balance Sheets for the calculations. “Total Assets” should be used as the base for all common sized calculations on the Balance Sheets. Common sized percentages should be calculated for all three historical years presented.
▪ See Exhibit A for a partial example of this tab.
o The 13th tab in your Financial Statement Analysis Template must be labeled Common Sized Income Statements.
▪ Set-up like the Historical Income Statements (Tab 2), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Income Statements for the calculations. “Revenue” or “Total Revenue” (depending on your company) should be used as the base for all common sized calculations on the Income Statements. Common sized percentages should be calculated for all three historical years presented.
o The 14th tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Balance Sheets.
▪ Start by copying and pasting the Historical Balance Sheets from Tab 3 to this worksheet. Then, add dollar and percentage change columns between each of the set of historical years.
▪ See Exhibit B for an example of this tab.
o The 15th tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Income Statements.
▪ Start by copying and pasting the Historical Income Statements from Tab 2 to this worksheet. Then, add dollar and percentage change columns between each of the set of historical years.
o The 16th tab in your Financial Statement Analysis Template must be labeled Projected Income Statements. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.
o The 17th tab in your Financial Statement Analysis Template must be labeled Projected Balance Sheets. Three years of projected statements should be included. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.
o The 18th tab in your Financial Statement Analysis Template must be labeled Projected Statement of Cash Flows. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.
▪ Other information relating to projected tabs:
▪ Projections should be based on research performed on your company and its industry. Use historical, trend, ratio data and current and future economic projections as well as information from the company’s MD&A to aid in preparing projections.
▪ Clearly state your assumptions in a text box at the bottom of each tab. Cite sources for assumptions based on research.
▪ The statements should be consistent, reasonable, and accurate. Areas that will be checked for accuracy include:
• The Balance Sheets should balance for all years presented.
• Retained earnings should be properly calculated using the prior year’s balance, net income, and dividends.
• The Ending Cash Balance on the Statement of Cash Flows should agree to the Cash Balance shown on the Balance Sheet for the same year.
• Net Income on the Income Statements should match what is reported on the top of the Statement of Cash Flows (if indirect method is used).
o Other instructions:
▪ The Excel workbook should be professionally formatted. Professional formatting includes:
• All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.
• Dollar signs are included in the first and last numbers of each column.
• Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.
• Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
▪ All common sized, horizontal analysis, and projection items should be calculated using formulas. Totals and subtotals should also be calculated using formulas. For an example of which cells may need formulas, please see Exhibits A & B.

Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.

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ACCT 370
Exhibit A: Example Common Sized Balance Sheets (Tab 12, Partial View)
(IMPORTANT NOTE: Only Partial Balance Sheet shown. Your Balance Sheet should include Liabilities and Stockholders’ Equity as well.)

Exhibit B: Example Horizontal Analysis of Balance Sheets (Tab 14, Partial View)
(IMPORTANT NOTE: Only Partial Balance Sheet shown. Your Balance Sheet should include Liabilities and Stockholders’ Equity as well.)

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