Project on Finance and Accounting in Excel
Instructions for final project:
1. Locate the audited financial statements in the 2019 Walmart Annual Report and 2019 Target Annual Report.
2. Using the 2019 income statement, prepare a horizontal analysis for both companies. (you will also need 2018 to complete this step)
3. Using the 2019 balance sheet, prepare a vertical analysis for both companies. You can perform this using only the key accounts/subtotals. Ie. Cash, A/R, Inventory, current assets, PP&E, Total Assets, A/P, current liabilities, Debt, Owners Equity. Each company may have a little different account structure, but the main subtotals will be available for both companies.
4. Perform the following ratios: Current, Quick, A/R Turnover/Inventory Turnover/Debt to Equity, times interest earned, gross profit, profit margin, return on assets, return on sales (refer to Chapter 13 exhibit 13-3
5. List 3 observations from your calculations that demonstrate you have analyzed both companies.
Utilize your resources – textbook – chapter 13, Investopedia.com, yahoo finance, etc.
Submit your project on an excel spreadsheet.
Rubric:
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Assignment turned in using Excel – one sheet for each step answers highlighted. |
20% |
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Horizontal Analysis completed correctly – formulas are in the spreadsheet (0 points if formulas are not used) |
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Vertical Analysis completed correctly – formulas are in the spreadsheet (0 points if formulas are not used) |
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Ratios formulas are provided and each number is identified then calculated (see example provided in Moodle) |
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Thoughtful observations are presented that demonstrate an understanding of the meaning of the ratios. |
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100% |