Textbook: Strategic Management and Business Policy: Globalization, Innovation an

Textbook: Strategic Management and Business Policy: Globalization, Innovation and Sustai, 15th Edition
By: Wheelen, Thomas L. / Hunger, J. David / Hoffman, A
ISBN: 978-0-13-783669-7
What is the 5Y financials?
Every firm in the list of possible cases for the capstone has a five-year period of analysis. Financial data comes from the Form 10 documents each firm submits to the U.S. Securities Exchange Commision. Form 10 includes Balance Sheets and Income Statements we collect for the Five-year Financials.
For most firms, there are five years of financial information. However, it may be there are only 4 or 3 years available. Just collect all what you can get in Excel.
The 5-Y financials Excel workbook includes six sheets: Balance Sheet, Income Statement with Common Size Percentages, and Financial Ratios you must complete in BUS485A. This Excel also includes three Pro-Forma Income sheets for three strategies that will be done in BUS485B.
Excel workbooks with the 5-Y financials for some firms are already available for you to customize in Course Resources/5Y Financials.
What is the Common Size Percentages?
Common size percentages are metrics to compare firm performance over the five years of analysis. All items in the income statement are presented as percentages of Sales or Revenue. For instance, when total costs are expressed as a percentage of sales, and it goes up from 43% to 49%, we could conclude costs have increased over time and we should research why costs went up. Is this because of internal or external factors?
What do you have to do?
After having chosen your firm of study, verify if there are already 5-Year financials for that firm in Course Resources. If it is, verify the data is correct with the Balance Sheet and Income Statement data in SEC-Form10 for the years of your analysis.
If there is no 5-Year financials Excel in Course Resources, you must create one using Form 10 for your period of analysis. Collect Balance Sheet and Income Statement annual data. Depending on your Excel skills, you should request help from your instructor to create formulas and the sheets for common size percentages, financial ratios, and Pro-Forma.
Use the template for Exhibit 5 – Common Size Percentages
Use the TemplateSA-EXH 5-CommonSize.xlsx to guide your work. This template shows the income statement for five years, and the common size percentages calculated to the right. Review how formulas are created for the 1993 common size percentage column, G8 to G27. These formulas were copied to the other years to the right. Because, when you use formulas in Excel, you just type one time, and then you copy it to generate the entire table! You must do the same in your 5Y-financials, sheet Income Statement.
Download SA-WritingTemplate-BUS485A.docx
If you have not downloaded yet SA-WritingTemplate-BUS485A.docx from Course Resources/The Strategic Audit, do it from the attachments here. This writing template must be used to write all sections of the Strategic Audit in this capstone. Drafts of your writing are shared as part of Discussion One in each module, and you will get feedback from other students and the instructor there.
The 5-Y Financials and Common Size Percentages support the writing of Section I.