In the Data Analytics Cases in prior chapters, you used Tableau to examine a data set and create charts to compare two (hypothetical) publicly traded companies, Big Store and Discount Goods. In this chapter, you will examine GPS Corporation and Tru, Inc. on the basis of various financial metrics. In this case you examine the companies’
pattern of leasing facilities, their transition to the new lease accounting standard in 2019, and the effect of that transition on debt covenants.
Since 2019 operating leases have been reported in the balance sheet of the lessee as a right-of-use asset and lease liability. Many companies at the time had debt covenants restricting the amount of debt during loan periods.
GPS Corporation and True, Inc. had as part of their loan agreements a requirement that the debt to equity ratio could not exceed 2.0 without being in default of the loans.

Required:
For each of the two companies in the seven-year period, 2015-2021, use Tableau to calculate and display the trends for the long-term portion of the (a) capital lease liability, (b) the finance lease liability, and (c) the operating lease liability, as well as (d) the debt to equity ratio. Based upon what you find, answer the following questions:
1. Is GPS’s pattern of leasing facilities as evidenced by its capital lease liability (a) increasing, (b) decreasing, or (c) remaining relatively the same over the period 2015-2018?
2. What is the capital lease liability for GPS in 2020?
3. Is Tru’s operating lease liability (a) increasing, (b) decreasing, or (c) remaining relatively the same over the period 2019-2021?
4. Is GPS technically in violation of its debt covenant during the period 2019-2021?

Resources:
Download the “GPS_Tru_Financials.xlsx” Excel file available in Connect, or under Student Resources within the Library tab. Save it to the computer on which you will be using Tableau.
For this case, you will create a calculation to produce the debt to equity ratio to allow you to compare and contrast the two companies.
After you view the training videos, follow these steps to create the charts you’ll use for this case:
• Open Tableau and connect to the Excel spreadsheet you downloaded.
• Starting on the Sheet 1 tab, drag “Company” and “Year” under Dimensions to the Columns shelf. Change “Year” to discrete by right-clicking and selecting “Discrete.” Select “Show ‘Filter’” and uncheck all the years except 2015 - 2021. Click “OK.”
• Drag “Capital lease liability”, “Lease liability – operating lease”, “Lease liability – finance lease” under Measures into the Rows shelf.
• Add labels to the bars by clicking on “Label” under the “Marks” card and clicking the box “Show mark label.” Format the labels to Times New Roman, bold, black and 10-point font. Edit the color of the years on the “Marks” card if desired by dragging “Year” on to the Color “Marks” card.
• Change the title of the sheet to be “Lease Liability” by right-clicking and selecting “Edit title.” Format the title to Times New Roman, bold, black and 15-point font. Change the title of “Sheet 1” to match the sheet title by right-clicking, selecting “Rename” and typing in the new title.
• On the Sheet 2 tab, follow the procedure above for the company and year.
• Drag “Total liabilities” under Measures to the Rows shelf. Change to “Discrete” data following the same instructions and uncheck “Show Header” to eliminate the number from view.
• Drag “Total shareholders’ equity” under Measures to the Rows shelf, change to discrete data, and uncheck “Show Header.”
• Create a calculated field by clicking the “Analysis” tab at the top of the screen and selecting “Create Calculated field.” Name the calculation “Debt to Equity Ratio.” In the Calculation Editor window, drag “Total liabilities,” type “/”, then drag “Total shareholders’ equity” from the Rows shelf. Make sure the window says that the calculation
is valid and click OK.
• Drag the newly created “Debt to Equity Ratio” to the Rows shelf. Click on the “Show Me” and select “sideby-side bars.” Add labels to the bars by clicking on “Label” under the “Marks” card and clicking the box “Show mark labels.” Format the labels to Times New Roman, bold, black and 10-point font. Edit the color on the “Marks” card if desired.

• Change the title of the sheet to be “Debt to Equity Ratio” by right-clicking and selecting “Edit title.” Format the title to Times New Roman, bold, black and 15-point font. Change the title of “Sheet 2” to match the sheet title by right-clicking, selecting “Rename” and typing in the new title.
• Format all other labels to be Times New Roman, bold, black and 12-point font.
• Once complete, save the file as “DA15_Your initials.twbx.”