Introduction Students will choose a public company and perform a comprehensive financial analysis on the company's most recent performance by comparing last year to current year results. It is...

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Introduction Students will choose a public company and perform a comprehensive financial analysis on the company's most recent performance by comparing last year to current year results.  It is essential for managers and leaders to understand how to analyze financial statements.  Being able to read and understand financial data will increase your effectiveness and advance your career. Upon completion of this assignment, you should be able to: · Examine the horizontal and vertical analysis of the Balance Sheet and Income Statement and explain notable changes. · Examine the Component Percentage Income Statement and Balance sheet and explain notable changes. · Calculate  and interpret Profitability Ratios. · Calculate and interpret Liquidity Ratios. · Calculate and interpret Solvency Ratios. Resources · Textbook: Financial Accounting 10th ed. · File: BUSM521_Financial Analysis Example Background In Week 1, you selected and claimed (via the Company Selection Discussion) a publicly traded company on which to perform your Comprehensive Financial Analysis. You are required to create an Excel spreadsheet to perform the required analysis on your company which must be submitted for grading.  You are required to use Excel formulas to perform all calculations to earn the full amount of points.   The BUSM521_Financial Analysis Example illustrates how to format your analysis and how to use formulas for the calculations. Once your analysis is complete you will also prepare a PowerPoint presentation which will serve as your report.  It will also be graded.  Please review the grading rubric attached to the Comprehensive Financial Analysis Project to fully understand the requirements of the assignment. Instructions 1. Review Chapter 13 of the textbook. 2. Choose a publicly traded company and post your choice in the Company Selection Discussion.  Each student must choose a different company.  Two projects on the same company won't be accepted. 3. You are required to create an Excel spreadsheet and perform the required analysis on your company which must be submitted for grading.  You are required to use Excel formulas for all calculations to earn the full amount of points. 4. Use the BUSM521 Financial Analysis Example to help you create your own Excel spreadsheet to compare the results of your company for the last two years and perform the following analysis: 1. Prepare a Horizontal Analysis of the Balance Sheet.    2. Prepare a Horizontal Analysis of the Income Statement.    3. Prepare a Component Percentage Income Statement.    4. Prepare a Component Percentage Balance Sheet.    5. Calculate the following financial ratios for last year and the current year: 1. Return on Equity 2. Earnings per Share 3. Total Asset Turnover Ratio 4. Inventory Turnover Ratio 5. Current Ratio 6. Debt to Equity Ratio 7. Price/Earnings (P/E) Ratio 6. You will submit your completed spreadsheet for grading. 5. Prepare a PowerPoint presentation to present and explain the results of your analysis.  You are required to utilize the MD&A section of the annual report to explain your analysis. 6. In addition to the cover page, contents page, and reference page, your PowerPoint deck should include at least 21 slides: 1. Introduction: 1 slide 2. Company history: 2 or 3 slides 3. Horizontal Analysis of the Balance Sheet with comments about the key differences: 2 slides (statement on 1 slide with comments on the 2nd slide) 4. Horizontal Analysis of the Income Statement with comments about the key differences: 2 slides 5. Component Percentage Income Statement with comments about the key differences: 2 slides 6. Component Percentage Balance Sheet with comments about the key differences: 2 slides 7. Present the seven financial ratios that show the two-year trend and use graphs or charts for visualization of the trend analysis.  Explain the meaning of each ratio and comment about the company's ratio values (1 slide per ratio): 7 slides 8. Use the MD&A section of the annual report to explain the results of the analysis of your company: 2 or 3 slides 9. On the final slide answer the question of would you buy stock in the company you selected?  Why or why not? 10. Your PowerPoint presentation should look professional and include a cover page, contents page, a references page, and have a logical layout. 7. When you have completed your assignment, save a copy for yourself and submit your Excel file and PowerPoint presentation to your instructor using the Assignment by the end of the workshop. The company Selected: Amazon
Answered Same DaySep 28, 2021

Answer To: Introduction Students will choose a public company and perform a comprehensive financial analysis on...

Sumit answered on Oct 02 2021
145 Votes
Balance Sheet_Horizontal
    AMAZON.COM, INC
    CONSOLIDATED BALANCE SHEETS
    (in millions, except per share data)
    ASSETS    2018    2017    Change in $    Change in %
    Current assets:
    Cash and cash equivalents    31,750    20,522    11
,228    0.5471201637
    Marketable securities    9,500    10,464    -964    -0.0921253823
    Inventories    17,174    16,047    1,127    0.0702311959
    Accounts receivable, net and other    16,677    13,164    3,513    0.266864175
    Total current assets    75,101    60,197    14,904    0.2475870891
    Property and equipment, net    61,797    48,866    12,931    0.2646216183
    Goodwill    14,548    13,350    1,198    0.0897378277
    Other assets    11,202    8,897    2,305    0.2590760931
    Total assets    162,648    131,310    31,338    0.2386566141
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    Current liabilities:
    Accounts payable    38,192    34,616    3,576    0.1033048301
    Accrued expenses and other    23,663    18,170    5,493    0.3023115025
    Unearned revenue    6,536    5,097    1,439    0.2823229351
    Total current liabilities    68,391    57,883    10,508    0.181538621
    Long-term debt    23,495    24,743    -1,248    -0.0504385079
    Other long-term liabilities    27,213    20,975    6,238    0.2974016687
    Stockholders’ equity:
    Preferred stock, $0.01 par value:
    Authorized shares — 500
    Issued and outstanding shares — none
    Common stock, $0.01 par value:
    Authorized shares — 5,000
    Issued shares — 507 and 514
    Outstanding shares — 484 and 491    5    5    0    0
    Treasury stock, at cost    -1,837    -1,837    0    0
    Additional paid-in capital    26,791    21,389    5,402    0.252559727
    Accumulated other comprehensive loss    -1,035    -484    -551    1.1384297521
    Retained earnings    19,625    8,636    10,989    1.2724641038
    Total stockholders’ equity    43,549    27,709    15,840    0.5716554188
    Total liabilities and stockholders’ equity    162,648    131,310    31,338    0.2386566141
Balance Sheet_Component %
    AMAZON.COM, INC
    CONSOLIDATED BALANCE SHEETS
    (in millions, except per share data)
                Component %
    ASSETS    2018    2017    2018    2017
    Current assets:
    Cash and cash equivalents    31,750    20,522    19.52%    15.63%
    Marketable securities    9,500    10,464    5.84%    7.97%
    Inventories    17,174    16,047    10.56%    12.22%
    Accounts receivable, net and other    16,677    13,164    10.25%    10.03%
    Total current assets    75,101    60,197    46.17%    45.84%
    Property and equipment,...
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