Acct 2012 AP II Chapter 17 Project Spring 2019 At the bottom ofthe Excel screen are tabs for the financial statements for Southwest Airlines as of December 31, 2017 stavailable). The December 31, 2018 financial statements will not be available until March 2019. 1) Prepare a horizontal analysis of the income statement for 201S to 2016 AND for 2016 to 2017 2) Prepare a vertical analysis of the income statement for 2015, 2016 and 2017 3) Prepare a horizontal analysis of the balance sheet for 2016 to 2017 4) Prepare a vertical analysis of the balance sheet for 2016 and 2017 5) Use the ratios on page 848 and the debt ratio and the profit margin ratio to prepare ratios for liquidity, solvency and profitability for Southwest Airlines for 2015 and 2016. )Write a 2-3 page report on your findings.Use your data from requirements 1-5 to support your conclusions. Address each of the three areas of analytical measures, liquidity, solvency and profitability. Isthe financial condition of Southwest Airlines, improving or declining? Why? 7) Market Price per Share of Common Stock 2015 2016 2017 3.06 9.04 65.45 Consolidated Statement of Income n milions, except per share amounts) Year ended December 31 016 017 $19,141 18,594$18,299 Salaries, wages, and beneits Maintenance materials and repairs Landing fees and other rentals Other gains) losses, net NCOME BEFORE INCOME TAXES 358 $ 3ss $ 033 $ 5.80 $ NET INCOME PER SHARE, BASIC NET INCOME PER SHARE, DLUTED Cash dividends dedared per common share $ 043 $ Southwest Airlines Co. Consolidated Statement of Stockholders' Equity in millions, except per share amounts) Yearended December 31,2017, 2016, and 2015 Capital in Excess of Par Value Accumulated other comprehensive income (loss) Common Retained Treasury Stock Total 738 Balance at December 31, 2014 Repurchase of common stock Issuance of common and treasury stock pursuant to employee stock plans Net tax benefit (expense of options exercised 808 $1,3157416 S 2.026 6.775 (1,180] (1,180) Cash dividends, $.2850 per share Comprehensive income Balance at December 31, 2015 Repurchase of common stock Issuance of common and treasury stock pursuant to employee stock plans Conversion of 5.25% senior notes to common stock Share-based Cash dividends, $.3750 pershare (188) 2,181 (188) 808$13749409 $ 1051 S 3,182) 7.358 (1,750) (1,750) 235) 2,244 235 728 Balance at December 31, 2016 Repurchase of common stock Issuance of common and treasury stock pursuant to employee stock plans 808$141011418 $ (323 S 4872 8441 (1,600) (1,600) Cash dividends, $.4750 per share Comprehensive income Balance at December 31, 2017 (285) 3,488 (285) 3,823 12 (6462) 10430 335 808 $145114,621 S Southwest Airlines Co. Consolidated Balance Sheet in millions, except share data) 12/31/1712/31/16 12/31/15 Current assets: Cash and cash equivalents Short-term investments Accounts and other receivables Inventories of parts and supplies, at cost Prepaid expenses and other current assets Total current assets $1,4951,6801583 1,468 474 1,778 1,625 420 337 188 4,498 4,024 Property and equipment, at cost: Fight equipment Ground property and equipment Deposits on fight equipment purchase contracts Assets constructed for others 21,368 4399 20,275 3.779 1,190 1,220 26,464 9,420 17,044 19,462 1,089 1,543 28,229 9,690 18,539 24,685 9,084 5,601 Less allowance for depreciation and amortization Fixed Assets (net 774 Other assets $25,11023,286 21,312 Total Assets LIABILITIES AND STOCKHOLDERS EQUITY Current iabilities: Accounts payable Accrued iabilities Ar traffic Eability Current maturities of long-term debt Total current Eabilities 1,320$ 1,178$ 1,188 1,985 2,990 637 7,406 3,460 348 566 6,844 3,320 2,358 1,390 Long-term debt less current maturities Deferred income taxes 2,821 3,374 1,078 728 4845 2,541 2,490 757 Other noncurrent iabilities Total iabilities 4,680 13,954 Common stock, $1.00 par value: 2,000,000,000 shares authorized; 807,611,634 shares issued in 2017 and 2016 and 2015 Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost: 219,060,856 and 192,450,855 shares in 2017 and 2016 respectively Total stackholders equity Total Eabilities and stackholders' equity 1,374 9,409 1,051) 1451 14,621 (6,462) 14,872] 7,358 $25,11023,286 21,312 OF NONCASH Acct 2012 AP II Chapter 17 Project Spring 2019 At the bottom ofthe Excel screen are tabs for the financial statements for Southwest Airlines as of December 31, 2017 stavailable). The December 31, 2018 financial statements will not be available until March 2019. 1) Prepare a horizontal analysis of the income statement for 201S to 2016 AND for 2016 to 2017 2) Prepare a vertical analysis of the income statement for 2015, 2016 and 2017 3) Prepare a horizontal analysis of the balance sheet for 2016 to 2017 4) Prepare a vertical analysis of the balance sheet for 2016 and 2017 5) Use the ratios on page 848 and the debt ratio and the profit margin ratio to prepare ratios for liquidity, solvency and profitability for Southwest Airlines for 2015 and 2016. )Write a 2-3 page report on your findings.Use your data from requirements 1-5 to support your conclusions. Address each of the three areas of analytical measures, liquidity, solvency and profitability. Isthe financial condition of Southwest Airlines, improving or declining? Why? 7) Market Price per Share of Common Stock 2015 2016 2017 3.06 9.04 65.45 Consolidated Statement of Income n milions, except per share amounts) Year ended December 31 016 017 $19,141 18,594$18,299 Salaries, wages, and beneits Maintenance materials and repairs Landing fees and other rentals Other gains) losses, net NCOME BEFORE INCOME TAXES 358 $ 3ss $ 033 $ 5.80 $ NET INCOME PER SHARE, BASIC NET INCOME PER SHARE, DLUTED Cash dividends dedared per common share $ 043 $ Southwest Airlines Co. Consolidated Statement of Stockholders' Equity in millions, except per share amounts) Yearended December 31,2017, 2016, and 2015 Capital in Excess of Par Value Accumulated other comprehensive income (loss) Common Retained Treasury Stock Total 738 Balance at December 31, 2014 Repurchase of common stock Issuance of common and treasury stock pursuant to employee stock plans Net tax benefit (expense of options exercised 808 $1,3157416 S 2.026 6.775 (1,180] (1,180) Cash dividends, $.2850 per share Comprehensive income Balance at December 31, 2015 Repurchase of common stock Issuance of common and treasury stock pursuant to employee stock plans Conversion of 5.25% senior notes to common stock Share-based Cash dividends, $.3750 pershare (188) 2,181 (188) 808$13749409 $ 1051 S 3,182) 7.358 (1,750) (1,750) 235) 2,244 235 728 Balance at December 31, 2016 Repurchase of common stock Issuance of common and treasury stock pursuant to employee stock plans 808$141011418 $ (323 S 4872 8441 (1,600) (1,600) Cash dividends, $.4750 per share Comprehensive income Balance at December 31, 2017 (285) 3,488 (285) 3,823 12 (6462) 10430 335 808 $145114,621 S Southwest Airlines Co. Consolidated Balance Sheet in millions, except share data) 12/31/1712/31/16 12/31/15 Current assets: Cash and cash equivalents Short-term investments Accounts and other receivables Inventories of parts and supplies, at cost Prepaid expenses and other current assets Total current assets $1,4951,6801583 1,468 474 1,778 1,625 420 337 188 4,498 4,024 Property and equipment, at cost: Fight equipment Ground property and equipment Deposits on fight equipment purchase contracts Assets constructed for others 21,368 4399 20,275 3.779 1,190 1,220 26,464 9,420 17,044 19,462 1,089 1,543 28,229 9,690 18,539 24,685 9,084 5,601 Less allowance for depreciation and amortization Fixed Assets (net 774 Other assets $25,11023,286 21,312 Total Assets LIABILITIES AND STOCKHOLDERS EQUITY Current iabilities: Accounts payable Accrued iabilities Ar traffic Eability Current maturities of long-term debt Total current Eabilities 1,320$ 1,178$ 1,188 1,985 2,990 637 7,406 3,460 348 566 6,844 3,320 2,358 1,390 Long-term debt less current maturities Deferred income taxes 2,821 3,374 1,078 728 4845 2,541 2,490 757 Other noncurrent iabilities Total iabilities 4,680 13,954 Common stock, $1.00 par value: 2,000,000,000 shares authorized; 807,611,634 shares issued in 2017 and 2016 and 2015 Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost: 219,060,856 and 192,450,855 shares in 2017 and 2016 respectively Total stackholders equity Total Eabilities and stackholders' equity 1,374 9,409 1,051) 1451 14,621 (6,462) 14,872] 7,358 $25,11023,286 21,312 OF NONCASH