Question
Annual Report Course Project In this course weve learned how to use ratio analysis to evaluate a companys performance. For this project you will use
Annual Report Course Project
In this course weve learned how to use ratio analysis to evaluate a companys performance. For this project you will use ratio analysis to compare the financial performance of Amazon.com, Inc. vs. Wal-Mart Stores, Inc. You will find a companys financial information under investor relations on most company websites. To find the annual financial statements for Amazon and Wal-Mart do the following:
- For Amazon, go to the companys investor website, scroll down and click on SEC Filings at the left side of the page and then click on Group: and select Annual reports. Click on Filing Year and select the year 2019 (filed February 1, 2019 for the year ended December 31, 2018). From there, you will be able to view the financial statements in PDF, Excel, etc.
- For Wal-Mart, go to the companys website, click on "Annual reports" under "Quick Links". Select the 2019 Annual Report (as of year ended 1/31/19) - it was filed March 28, 2019.
INSTALLMENT POINTS 1. Project Part 1 25 2. Project Part 2 25 TOTAL POINTS 50 - For Amazon, go to the companys investor website, scroll down and click on SEC Filings at the left side of the page and then click on Group: and select Annual reports. Click on Filing Year and select the year 2019 (filed February 1, 2019 for the year ended December 31, 2018). From there, you will be able to view the financial statements in PDF, Excel, etc.
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Deliverables
Due in Module # Major Milestones/Final Deliverables 8 Project Part 1
Create one chart in Excel that shows your ratio calculations for both companies. Use the template provided.
- The first column lists the name of each ratio youre calculating. In your chart, you need to compute all of these ratios for bothcompanies:
- Current ratio
- Accounts Receivables turnover
- Average collection period
- Inventory turnover
- Days in inventory
- Profit margin
- Asset turnover
- Return on assets
- Return on common stockholders equity
- Debt to total assets ratio
- Times interest earned
- Free cash flow
- Next you have columns for Amazons ratio calculations and results. In the heading for these columns, indicate the company name and fiscal year. Make sure to show your work, so I can view your work and award partial credit if applicable. Round your answers to 2 decimal places. Also, make notes for each calculation as to where you found the information. This will help you obtain partial information if appropriate.
- Next, you have columns for Wal-Marts ratio calculations and results. In the heading for these columns, indicate the company name and the fiscal year. Make sure to show your work so I can view your work. Round your answers to 2 decimal places. Also, make notes for each calculation as to where you found the information. This will help you obtain partial information if appropriate.
- Finally, you have a column called Company with the More Favorable Result. In this column you will identify which company has the more favorable result for each ratio and why it is more favorable.
You must show all of your calculations for your ratio results. If you do not show your calculations, points will be subtracted from your score. See the instructions above for showing your calculations.
If you need further assistance with Excel spreadsheets review the Excel tutorial.
Please save your assignment as an Excel document (.xlsx) and upload it by clicking on the Browse My Computer button or by dragging the file inside the Attach Files box.
This assignment is worth 25 points and will be evaluated using the ACCT 202 Annual Report Part 1 Rubric, which is available from the assignment submission area, as well as in the course Grade Center.
9 Project Part 2
After completing the chart, you should interpret and compare the liquidity, profitability, and solvency results for the two companies in a separate Word document. Your completed paper should be approximately 1 page typed (1 inch margins and double spaced), including citations, and the MLA format should be used. If you need help with the MLA format guidelines use the following references:
Style Guides
MLA Formatting and Style GuideThe OWL at Purdue
Citations
You need to provide citations for all your sources in MLA format. Go to MLA Citations Style provided by the B. David Schwartz Memorial Library at Long Island University if you need examples of how to do this.
The work in this course is to be completed individually. Any work not deemed to be created by you will receive a zero and you may be subject to other institutional penalties including, but not limited to, course failure. Plagiarism will not be tolerated; it demonstrates a lack of integrity and professional ethics.
This assignment is worth 25 points and will be evaluated using the ACCT 202 Annual Report Part 2 Rubric, which is available from the assignment submission area, as well as in the course Grade Center.
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