5. You would have completed chapters 5 and 6 of the textbook at the stage of the course and you will now be tasked with calculating and explaining the Horizontal and selected Ratio Analysis. VII. Horizontal Analysis: Please select two (2) Income Statement and two (2) Balance Sheet accounts from the most recent and prior year financial. In the accompanied Excel spreadsheet please calculate the $ and % changes, then in your own word explain the changes. Your answer should include a comparison of the current and prior years analysis. VIII. Ratio Analysis. In the accompanied Excel spreadsheet please calculate and interpret the selected ratio analysis. Your answer should include a comparison of the current and prior years analysis. 2018 May 31, 2018 May 31, 2017 $ 4,249 996 3,498 5,261 1,130 15,134 4,454 285 154 2,509 22,536 $ 3,808 2,371 3,677 5,055 1,150 16,061 3,989 283 139 2,787 23,259 6 Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS Current Habilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Commitments and contingencies (Note 15) Redeemable preferred stock Shareholders' equity: Capital in excess of stated value Accumulated other comprehensive loss Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Class A Convertible Common Stock Shareholders' equity: Common stock at stated value Class B Common Stock Shareholders' equity: Common stock at stated value 336 2,279 3,269 150 6,040 3,468 3,216 325 2,048 3,011 84 5,474 3,471 1,907 0 0 6,384 (92) 3,517 9,812 22,536 5,710 (213) 6,907 12,407 23,259 2017 May 31, 2017 May 31, 2016 $ 3,808 2,371 3,677 5,055 1,150 16,061 3,989 283 139 2,787 23,259 $3,138 2,319 3,241 4,838 1,489 15,025 3,520 281 131 2,422 21,379 Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Commitments and contingencies Redeemable preferred stock Shareholders' equity: Capital in excess of stated value Accumulated other comprehensive (loss) income Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Class A Convertible Common Stock Shareholders' equity: Common stock at stated value Class B Common Stock Shareholders' equity: Common stock at stated value 6 44 3251 2.048 2,191 3,011 3,037 84 85 5,474 5,358 3,471 1,993 1,9071 ,770 0 0 8,638 (213) 3,979 12,407 23,259 7,786 318 4,151 12,258 21,379