Integrated Case
Data Financial Statement Analysis Package (FSAP): Version 10.0 Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 10th EditionFSAP User Guides: By Jim Wahlen, Steve Baginski and Mark Bradshaw The FSAP user should only enter data in the blue-font cells shaded light green. The FSAP User Guides appear in column I to the right. The Data spreadsheet is designed for up to six years of financial statement data. The user must input the most recent year of financial statement data in column G, regardless of the number of years of data inputted. The user must conform financial statement data to the FSAP template because the spreadsheets within FSAP use the Data spreadsheet as their base. The user can, however, rename account titles as necessary to match the account titles of the particular firm. FSAP contains a number of general purpose accounts that can be renamed to fit the accounts of the particular firm (for example, Other Current Assets (1) and (2)). FSAP automatically computes the amounts of various sub-totals and totals within the Data spreadsheet. These items are shaded in gray and serve in checking the mathematical accuracy of inputted amounts. FSAP checks to ensure that total assets equal total liabilities and shareholders’ equity, that total revenues and gains minus total expenses and losses equal reported net income, and that cash flows from operating, investing, and financing activities equal the change in cash on the balance sheet. These financial data checks appear at the bottom of the Data spreadsheet. Any material non-zero amounts (that are not due to rounding) on these rows require the user to re-check amounts inputted to identify and correct the error. Analyst Name:enter analysts' namesInsert your name in column B. Company Name:enter company nameEnter the name of the company in Column B. This name will appear on the output of all spreadsheets within FSAP. Year (Most recent in far right column.)201620172018201920202021Throughout FSAP, enter amounts for account titles listed in brackets <> as negative numbers. Except for per share amounts, be consistent with the units of the amounts entered (for example, thosands or millions). BALANCE SHEET DATA201620172018201920202021Enter Balance Sheet Data: Assets: Cash and cash equivalents Short-term investments Accounts and notes receivable - net Inventories Prepaid expenses and other current assets Other current assets (1)Other current assets (1), (2) and (3) can be renamed and used for different types of current assets for different firms. Other current assets (2) Other current assets (3) Current Assets000000FSAP automatically computes the amount of total current assets. Long-term investments Equity and cost investments Property, plant, and equipment - at cost
Operating lease right-of-use assets Other noncurrent asset (1)Other noncurrent assets (1), (2) and (3) can be renamed and used for different types of noncurrent assets for different firms. Other noncurrent asset (2) Other noncurrent asset (3) Total Assets000000FSAP automatically computes the amount of total assets. Liabilities and Equities: Accounts payable Accrued liabilities Notes payable and short-term debt Current maturities of long-term debt Current operating lease liabilities Income taxes payable Other current liabilities (1)Other current liabilities (1) and (2) can be renamed and used for different types of current liabilities for different firms. Other current liabilities (2) Current Liabilities000000FSAP automatically computes the amount of total current liabilities. Long-term debt Long-term operating lease liabilities Deferred tax liabilities Other noncurrent liabilities (1)Other noncurrent liabilities (1) and (2) can be renamed and used for different types of non-current liabilities for different firms. Other noncurrent liabilities (2) Total Liabilities000000FSAP automatically computes the amount of total liabilitries. Preferred stock Common stock + Additional paid in capital Retained earnings Accum. other comprehensive income and other equity adjustmentsInclude on this line any treasury stock accounts and any items that do not fall within some other shareholders' equity line. Such items seldom appear in balance sheets of U.S. firms. Amounts that increase (decrease) total shareholders' equity should be entered as positive (negative) amounts. Total Common Shareholders' Equity000000FSAP automatically computes the amount of total shareholders' equity. Noncontrolling interests Total Equity000000 Total Liabilities and Equities000000FSAP automatically computes the amount of total liabilities plus shareholders' equity. INCOME STATEMENT DATA201620172018201920202021Enter Income Statement Data: RevenuesWhen entering income statement data, enter amounts that increase income (revenues, gains, income) as positive amounts, and enter amounts that decrease income (expenses, losses) as negative amounts. Gross Profit000000FSAP automatically computes the amount of gross profit. Add back: Imputed interest expense on operating lease obligationsCompute and add back the imputed interest expense on operating lease obligations (if any), as shown in Chapter 10.Other operating expenses (1), (2), and (3) can be renamed and used for different types of recurring operating expenses for different firms.Non-recurring operating expenses can be renamed and used for different types of non-recurring expenses for different firms. Income from equity affiliates Wahlen, James M.: Wahlen, James M.: Include here if reported as part of operating income. Non-recurring operating gains The FSAP user must decide whether particular operating gains or losses are non-recurring - infrequent and unusual given the firm's business and operating environment. If so, enter the amounts on the appropriate rows. Enter expense and loss amounts as negative numbers. Operating Income000000FSAP automatically computes the amount of operating profit. Subtract: Imputed interest expense on operating lease obligationsCompute and subtract the imputed interest expense on operating lease obligations (if any), as shown in Chapter 10. Interest and Other income Income from equity affiliates Wahlen, James M.: Wahlen, James M.: Include here if not reported as part of operating income. Wahlen, James M.: Wahlen, James M.: Include here if reported as part of operating income.Enter any amounts of income (or ) from equity or noncontrolled affiliates. Other income or gains Enter income or gain amounts (or expense or loss amounts as negative numbers) that are unusual and non-recurring and outside of normal business operations. Income before Tax000000FSAP automatically computes the amount of income before tax.Enter the amount of income tax expense that appears on the income statement in the section for income from continuing operations. If income tax expense reduces income, enter the amount as a negative number. Income from discontinued operationsEnter any amount reported in the separate section of the income statement labeled Discontinued Operations. The amount is reported net of tax effects. Enter as a positive or negative number as appropriate. Extraordinary gains Enter any amount reported in the separate section of the income statement labeled Extraordinary Items. The amount is reported net of taxes. Enter as a positive or negative number as appropriate. Income from changes in accounting principlesEnter any amount reported in the separate section of the income statement labeled Changes in Accounting Principles. The amount is reported net of income taxes. Enter as a positive or negative number as appropriate. Net Income 000000FSAP automatically computes the amount of net income using the above data for revenues, expenses, gains and losses. Net income attributable to noncontrolling interestsEnter the amount of net income attributable to noncontrolling interests. Enter amount as a negative number. If the firm reports a net loss attributable to noncontrolling interests, enter the amount as a positive number. Net Income attributable to common shareholders000000 Net Income (enter reported amount as a check)Enter the amount of reported net income on this line. It will be used by FSAP to provide a mathematical check on the amounts of all revenues and expenses on preceding lines. Other comprehensive income itemsThis amount usually appears in the Statement of Comprehensive Income. Enter as a positive or negative number as appropriate. Comprehensive Income000000FSAP automatically computes the amount of comprehensive income. STATEMENT OF CASH FLOWS DATA201620172018201920202021Enter Statement of Cash Flows Data: Net Income000000In the Statement of Cash Flows Data, enter amounts reported on the firm's statement of cash flows. Enter amounts that increase (decrease) cash as positive (negative) numbers. The row headings help indicate whether amounts should be positive or negative. Add back depreciation and amortization expensesFSAP automatically enters the Net Income amount computed above. Add back stock-based compensation expense Deferred income taxes Decrease in accounts receivable Decrease in inventories Decrease in prepaid expenses Decrease in other current assets Decrease in other noncurrent assets Increase in accounts payable Increase in income taxes payable Increase in other current liabilities Operating lease right-of-use assets and liabilities, net Other addbacks to net income Other operating cash flows Net CF from Operating Activities000000FSAP automatically computes the amount of cash flow from operations. Proceeds from sales of property, plant, and equipment Decrease in marketable securities Investments sold Payments for acquisitions of intangible assets Other investing transactions Net CF from Investing Activities000000FSAP automatically computes the amount of cash flow from investing activities. Increase in short-term borrowing Increase in long-term borrowing Issue of capital stock Proceeds from stock option exercises Other financing transactions (1) Other financing transactions (2) Net CF from Financing Activities000000FSAP automatically computes the amount of cash flow from financing activities. Effects of exchange rate changes on cash Changes in restricted cash Net Change in Cash000000FSAP automatically computes the net change in cash. Cash and cash equivalents, beginning of year000000Enter the beginning balance in cash and cash equivalents for the first year of data. Cash and cash equivalents, end of year000000 SUPPLEMENTAL DATA201620172018201920202021Enter Supplemental Data: Statutory tax rateEnter the statutory income tax rate applicable to ordinary income and deductions (such as the deduction for interest expense). The Federal corporate income tax rate is currently 35 percent in the United States. Alternatively, one can enter a statutory tax rate that captures the combined effects of Federal, state, and foreign income taxes. These rates are commonly disclosed in the tax note. Average tax rate implied from income statement data ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!This rate is computed by FSAP as the ratio of the income tax expense to income before tax. After-tax effects of nonrecurring and unusual items on net income000000This row automatically sums the pre-tax amounts of unusual and nonrecurring items and the after-tax amounts of discontinued operatons, extraordinary items and changes in accounting principles from the income statement above. The analyst must then adjust the items that are stated in pre-tax amounts to an after-tax basis either by adjusting for the specific amounts of applicable tax (or tax savings) as disclosed by the firm, or if not disclosed, by adjusting these items for the statutory tax rate. Depreciation expenseEnter the amount of depreciation