Assingments % - Company Financial Analysis: Horizontal, Vertical, and Cash Flow Review

sing the company that you chose in this week’s Discussion, develop a company trend and common-size analysis using the Mergent Database Links to an external site. and Excel.
Download the company’s financial statements.
Download the Mergent Online Database Instructions .docx .Open this document with ReadSpeaker docReader Download Mergent Online Database Instructions.docx.Open this document with Read Speaker doc Reader
Follow the step-by-step instructions in the Mergent Online Database Instructions document to select your company and download their financial statements from the Mergent Online database.
Review Horizontal and Vertical Analysis for Balance Sheet and Income Statement.
Download and complete the steps on the Module 1 Assignment 1 – Company Financial Analysis – Part 1 – Balance Sheet (Horizontal Analysis) Download Module 1 Assignment 1 – Company Financial Analysis – Part 1 – Balance Sheet (Horizontal Analysis)Open this document with ReadSpeaker docReader document. Use your company’s two most recent sets of years (three years total), as the example is dated.
Remember that Horizontal analysis is used to evaluate trends in the financial condition of an organization.
Download and complete the steps on the Module 1 Assignment 1 – Company Financial Analysis – Part 1 – Income Statement (Vertical Analysis) Download Module 1 Assignment 1 – Company Financial Analysis – Part 1 – Income Statement (Vertical Analysis)Open this document with ReadSpeaker docReader document. Use your company’s two most recent years, as the example is dated.
Remember that Vertical analysis is used to detect items that are out of line, that deviate from a predetermined amount, or that are indicative of other problems.
Perform the Horizontal and Vertical Analysis of the Balance Sheet and Income Statement and Prepare a Written Analysis, answering all assigned questions in the respective downloaded financial statement, not an alternative document.
For the Statement of Cash Flows, you will analyze the information presented in the Statement.
Obtain the Statement of Cash Flows that you saved from Mergent.
The Statement of Cash Flows is broken out into three areas: Operating Activities, Investing Activities, and Financing Activities.
How did your company’s use of cash differ in operating activities from year-to-year?
What are the sources and uses of cash in both investing and financing activities?
Do not submit alternative documents, only the downloaded financial statements. Answer the assigned questions in the respective downloaded financial statement. Three attachments in one submission is required. If you have any questions, please ask your professor.

Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!

This assignment requires a deep dive into a company’s financial performance through horizontal and vertical analysis, as well as a review of its cash flow statement. Here’s a step-by-step guide to help you organize your work and ensure you’re addressing all components correctly:

Step 1: Select Your Company

Begin by choosing the company you’ll analyze. If you’ve already selected the company in this week’s discussion, then you’re off to a good start!

Step 2: Access Mergent Database and Download Financial Statements

Download the Mergent Online Database Instructions: Follow the instructions in the provided Mergent Online Database Instructions.docx file to locate your chosen company within the Mergent database.
Download the Company’s Financial Statements: Once you’ve located your company, download the relevant financial data, which should include the balance sheet, income statement, and statement of cash flows for the most recent years available. Make sure to get data for the two most recent years and, if possible, three years total (as instructed).

Step 3: Review Horizontal and Vertical Analysis for Balance Sheet and Income Statement

Horizontal Analysis of Balance Sheet: This type of analysis will help you evaluate the trend in the company’s financial condition. Focus on how the financial figures have changed over time, especially between the two most recent years.
- Download the Module 1 Assignment 1 – Company Financial Analysis – Part 1 – Balance Sheet (Horizontal Analysis) document.
- Complete the analysis by calculating the percentage change in the balance sheet figures from one year to the next.
Vertical Analysis of Income Statement: Vertical analysis compares each item on the income statement as a percentage of total revenue (or sales). This will help you detect any unusual trends or deviations in expense ratios.
- Download the Module 1 Assignment 1 – Company Financial Analysis – Part 1 – Income Statement (Vertical Analysis) document.
- Complete the vertical analysis for the income statement using the provided template.

Step 4: Perform the Horizontal and Vertical Analysis of the Financial Statements

For each of the downloaded financial statement documents (balance sheet and income statement):

Balance Sheet (Horizontal Analysis): Calculate the year-over-year changes for key figures such as assets, liabilities, and equity.
Income Statement (Vertical Analysis): For each line item (revenues, costs, expenses, etc.), calculate what percentage they represent of total revenue.

Step 5: Analyze the Statement of Cash Flows

The statement of cash flows is divided into three main sections: Operating Activities, Investing Activities, and Financing Activities.

Operating Activities: Look at how the company’s use of cash has changed year to year in this section. Has it been increasing or decreasing? Consider whether the company is generating cash from operations effectively.
Investing Activities: Identify the sources and uses of cash related to investments. Has the company been acquiring or selling assets? Are they investing in long-term growth or liquidating assets?
Financing Activities: Understand how the company is raising capital or paying down debt. Have they issued new stock, borrowed funds, or repaid debt? Look for trends in how the company is managing its financial obligations.

Step 6: Complete the Written Analysis

Once you’ve done the calculations and analysis, it’s time to answer the assigned questions within the downloaded financial statements:

Horizontal Analysis of the Balance Sheet: Answer the questions regarding trends and changes in the company’s financial position.
Vertical Analysis of the Income Statement: Address any deviations or out-of-line figures that might indicate a financial issue.
Cash Flow Analysis: Answer the following questions for the statement of cash flows:
- How did your company’s use of cash differ in operating activities from year-to-year?
- What are the sources and uses of cash in both investing and financing activities?

Note: Be sure to answer all questions within the respective downloaded financial statements rather than in a separate document.

Step 7: Review and Edit Your Analysis

Once you’ve completed the analyses and written responses:

Check Formatting: Make sure your analysis is clearly structured, following the template and ensuring clarity in your answers.
Proofread: Double-check for spelling, grammar, or calculation errors. Ensure your analysis flows logically and that each section of the assignment is addressed.

Step 8: Submit the Required Documents

Once you’re confident that you’ve answered all the questions:

Submit the three required documents (the balance sheet horizontal analysis, income statement vertical analysis, and cash flow analysis).
Ensure that your submission only includes the downloaded financial statements and analysis, as specified.

By following this guide, you’ll be able to organize your analysis systematically and tackle your financial assignment with ease. Good luck!