1 Use formulas where you can. This must be turned in using excel and typed. Print to 3 pages only Please note that I have proided some answers to help you igure out the rest 3 '1 . Compute the following ratios or % for the companies below Show the components of the numerator and denominator 4 of your calculation and carry your answer out to 1/10th of a 96, or 3 decimal ponts 5 (example: 2.300/3.400- 676 or 67.6%. This is just to show style and not actual formulas) 7 Liquidity is an important factor for companies to monitor.. think about why that is and do the following Company Year Wal-mart 2017 Company/Year Wal-mart 2016 Company Year Walmart 2015 Ratio 2 Current Ratio #ON/01 3 (See page 765 of your 4 book) Company/Year Costco 2017 Company/Year Costco 2016 Company Year Costco 2015 Ratio 9 Current Ratio #DIV/01 #OV/01 Company/Year Wal-mart 2017 Company/Yea Wal-mart 2016 Company/Year Wal-mart 2015 6 Gross Margin % #010" #01V/01 Company/Year Costco 2017 Company/Year Costco 2016 Company/Year Costco 2015 2 Gross Margin % #DIV/0! 46 Use your book to get more info on these ratio's 47 2. Answer the following 2017 2016 2015 49 Which company is more liquid in each year? 50 (use the current ratio)P. 765-67 tells what a good current ratio is 51 52 53 54 3. A current ratio ofless than one indicates which of the following (circle the best answer)? 58 a) The company will have a hard time paying current debt b) The company will have an easier time paying current debt. 58 59 4-6: Perform horizontal (time period to time period) analysis for the report year 2017 on key lines of the income statement 60 (See last page for how to do this). Carry your analysis out to 1/10th of a percentage your work and results. Use formulas where you can 61 Wal-mart 4. Find the percent change in 62 sales (total) 64 85 Wal-mart 5. Find the percent change in 6Gross Margin (total) Do not use GM %, find the change Wal-mart 6. Find the percent change in net income: 3 Based on 4-6 which company is doing better- give your reasons why: 75 76 78 g Revew the Balance Sheet and Footnotes for both companies then answer the following set of questions: ONLY USE THE 2017 Annual Report for these next questions!!! 2 7 Estimates- What does each company say about estimates and name at least one account each company has that would use estimates 4 Wal-mart 35 Page # 6 37 38 o Costco 1 Page # 92 95 96 8. Locate the cost of goods sold footnote, what is included in costs for each? Just list some of the items. 97 98 Walmart 100 101 102 Costco 103 104 105 06 9. What is the advertising/marketing expense for each company AND what type of advertising do the companies do? 107 109 110 Wal-mart 111:Page # 112 113 114 Costco 115 Page # 116 118 10. What methods) of depreciation does the company use for inancial statement purposes? (Answer for both companies) 119 120 Wal-mart 121 22 Costco 123 124 25 11. Locate the inventory footnate. What method do they use to account for inventory costs? (note: retail is a form of LIFO) 126 127 Wal mart 128 129 130 131 Costco 12. Using the cash ow statement, please tell me how much each company invested in Property, Plant and Equipment for the year 2017 (this is sometimes referred to as Capital Expendtures). Remember, numbers are truncated, so tell me the actual amount. Do not include equipment leased to others. Wal-mart Costco 13. For each company, locate the footnote disclosure for commitments/contingencies/leases/rent, and briefy explain what a contingency is (asset or liability) and summarize the footnote, with page number Wal-mart Page # Costco # Page . 14. Quarterly financial data helps readers determine the seasonality of the company's operations. Locate the quarterly data in the annual report and tell me if there any major seasonal fuctuations (which quarters have the highest sales) If not, please note that they are not seasonal (Google seasonality for more info) Wal-mat Page Costco Page 15. Complete the following reconciliation for the curent annual report year 2017 (this is just for the Retained Eamings section, not for total stockholders qity) Show beginning bal and then list all other activity in R/E and then show the endng balance, key numbers have been given for you in Costco. List the description of each item involved- this should not be dficult: Wal-mart Costco 749,000,000 69 70 Beginning Bal. in RE 71 +Plus 72 Less Diidends 3 - Other 74 5 Ending Balance in RE 76 749,000,000 77 Horizontal Analysis Info: it is a technique for evaluating a series of inancial statement data over a period oftime. The purpose of a horizontal analysis is to express the changes in 79 an item in percentages, based on a speciic past year chosen as the base year. In this project the fiscal year 2016 is the base year, since we want to compare how much we have changed in 2017 compared with 2016. To calculate this we use the following formula: 1 Current year (2017)-Base year (2016) 32 84 A 85 86 Base year (2016) ve signs means itwas a decrease 1 Use formulas where you can. This must be turned in using excel and typed. Print to 3 pages only Please note that I have proided some answers to help you igure out the rest 3 '1 . Compute the following ratios or % for the companies below Show the components of the numerator and denominator 4 of your calculation and carry your answer out to 1/10th of a 96, or 3 decimal ponts 5 (example: 2.300/3.400- 676 or 67.6%. This is just to show style and not actual formulas) 7 Liquidity is an important factor for companies to monitor.. think about why that is and do the following Company Year Wal-mart 2017 Company/Year Wal-mart 2016 Company Year Walmart 2015 Ratio 2 Current Ratio #ON/01 3 (See page 765 of your 4 book) Company/Year Costco 2017 Company/Year Costco 2016 Company Year Costco 2015 Ratio 9 Current Ratio #DIV/01 #OV/01 Company/Year Wal-mart 2017 Company/Yea Wal-mart 2016 Company/Year Wal-mart 2015 6 Gross Margin % #010" #01V/01 Company/Year Costco 2017 Company/Year Costco 2016 Company/Year Costco 2015 2 Gross Margin % #DIV/0! 46 Use your book to get more info on these ratio's 47 2. Answer the following 2017 2016 2015 49 Which company is more liquid in each year? 50 (use the current ratio)P. 765-67 tells what a good current ratio is 51 52 53 54 3. A current ratio ofless than one indicates which of the following (circle the best answer)? 58 a) The company will have a hard time paying current debt b) The company will have an easier time paying current debt. 58 59 4-6: Perform horizontal (time period to time period) analysis for the report year 2017 on key lines of the income statement 60 (See last page for how to do this). Carry your analysis out to 1/10th of a percentage your work and results. Use formulas where you can 61 Wal-mart 4. Find the percent change in 62 sales (total) 64 85 Wal-mart 5. Find the percent change in 6Gross Margin (total) Do not use GM %, find the change Wal-mart 6. Find the percent change in net income: 3 Based on 4-6 which company is doing better- give your reasons why: 75 76 78 g Revew the Balance Sheet and Footnotes for both companies then answer the following set of questions: ONLY USE THE 2017 Annual Report for these next questions!!! 2 7 Estimates- What does each company say about estimates and name at least one account each company has that would use estimates 4 Wal-mart 35 Page # 6 37 38 o Costco 1 Page # 92 95 96 8. Locate the cost of goods sold footnote, what is included in costs for each? Just list some of the items. 97 98 Walmart 100 101 102 Costco 103 104 105 06 9. What is the advertising/marketing expense for each company AND what type of advertising do the companies do? 107 109 110 Wal-mart 111:Page # 112 113 114 Costco 115 Page # 116 118 10. What methods) of depreciation does the company use for inancial statement purposes? (Answer for both companies) 119 120 Wal-mart 121 22 Costco 123 124 25 11. Locate the inventory footnate. What method do they use to account for inventory costs? (note: retail is a form of LIFO) 126 127 Wal mart 128 129 130 131 Costco 12. Using the cash ow statement, please tell me how much each company invested in Property, Plant and Equipment for the year 2017 (this is sometimes referred to as Capital Expendtures). Remember, numbers are truncated, so tell me the actual amount. Do not include equipment leased to others. Wal-mart Costco 13. For each company, locate the footnote disclosure for commitments/contingencies/leases/rent, and briefy explain what a contingency is (asset or liability) and summarize the footnote, with page number Wal-mart Page # Costco # Page . 14. Quarterly financial data helps readers determine the seasonality of the company's operations. Locate the quarterly data in the annual report and tell me if there any major seasonal fuctuations (which quarters have the highest sales) If not, please note that they are not seasonal (Google seasonality for more info) Wal-mat Page Costco Page 15. Complete the following reconciliation for the curent annual report year 2017 (this is just for the Retained Eamings section, not for total stockholders qity) Show beginning bal and then list all other activity in R/E and then show the endng balance, key numbers have been given for you in Costco. List the description of each item involved- this should not be dficult: Wal-mart Costco 749,000,000 69 70 Beginning Bal. in RE 71 +Plus 72 Less Diidends 3 - Other 74 5 Ending Balance in RE 76 749,000,000 77 Horizontal Analysis Info: it is a technique for evaluating a series of inancial statement data over a period oftime. The purpose of a horizontal analysis is to express the changes in 79 an item in percentages, based on a speciic past year chosen as the base year. In this project the fiscal year 2016 is the base year, since we want to compare how much we have changed in 2017 compared with 2016. To calculate this we use the following formula: 1 Current year (2017)-Base year (2016) 32 84 A 85 86 Base year (2016) ve signs means itwas a decrease