ACC 212 Real World Problem 1: Analyzing Financial Statements As you move into your career, you will have a 401K and investments that requires knowledge of investing and financial statements. For this assignment, you (and a classmate if desired) will analyze two competitor companies: Amazon (AMZN) and Apple (AAPL). Instruction: Following the requirements below, please complete a report showing your findings. The report must be completed in Excel and only submit one copy per team. Handwritten copies will not be accepted! Requirements: 1. Analyze Amazon and Apple annual financial statements for 2022, please complete and SHOW the following: (Use finance.yahoo.com) to view the Financial statements. a. Perform a Horizontal and Vertical Analysis on the Income Statement of each company, for the years 2022 and 2021. (For example, to complete a Horizontal Analysis for 2021, data from 2020 will be required) (50 points) b. Compare the Horizontal and Vertical Analysis (part a) for both companies and answer the following questions. (3 point each = 15 points) 1. Which company had the higher increase in total revenue from 2021 to 2022? 2. Which company had the higher increase in net income from 2021 to 2022? 3. For every dollar of revenue, Amazon has a profit of ____________? For every dollar of revenue, Apple has a profit of ____________? 4. Cost of Revenue (COGS) is what percentage of total revenue for the year 2022 for Apple? And for Amazon? c. Ratios. The following Ratios MUST BE CALCULATED and PRESENTED for Amazon and Apple for the year 2022 and 2021. Current Ratio, Inventory Turnover, Gross Profit Percentage, AR Turnover, and Debt to equity Ratio (3 points each = 15 points). d. Based on the ratios calculated Part C, please answer the following questions. (3 point each = 15 points) i. Based on the Ratios for each company, which company had the higher Gross Profit Percentage in 2021 and 2022? ii. How many days does it take for Apple and Amazon to sell through their inventory in 2022? iii. Which company had the riskier debt-to-equity ratio in 2021 and 2022? (Please refer to Financial Statement Analysis Notes) iv. Which company has the best current ratio in 2021 and 2022? (Please refer to Financial Statement Analysis Notes) v. Which company is collecting their accounts receivable (net receivables) faster in 2022

Here are the financial statements

https://finance.yahoo.com/quote/AAPL/financials?p=AAPL

https://finance.yahoo.com/quote/AMZN/financials?p=AMZN

Instructions: Following the requirements (given in the above document), please complete a report showing your findings.

You will need Amazon and Apple financial statements to complete this project. Please go to https://finance.yahoo.com/

The report must be completed in Excel (use Excel formulas to do calculations, don't just type in the numbers). I will take off points at my discretion if Excel formulas are not used for all calculations.

Only use the Excel template (scroll down, last document is Excel blank template) provided for project and DO NOT change the formatting of the Excel template. You can get the data for 2020, 2021 and 2022 from this website: https://finance.yahoo.com/Links to an external site.

Also, you can google any financial statement you like. For example, google "amazon income statement 2022" "Apple income statement 2022" "Amazon balance sheet 2022" "Apple income statement 2022" Then, select https://fincance.yahoo.com/

Only submit one copy per team (if you are working in a team of two).

You (one member of the team) must email me to let me know the names of team members, and also the name of the team member who will be submitting the project in Canvas.

Handwritten copies or Word documents will NOT be accepted!

Incomplete project will NOT be accepted.

Only complete and error-free projects will be accepted and graded.