Question
Excel Project: Part I Instructions Company Information (Tab 1), and Historical Income Statements, Balance Sheets, and Cash Flows (Tabs 2-4) Choose one of the 3
Excel Project: Part I Instructions
Company Information (Tab 1), and
Historical Income Statements, Balance Sheets, and Cash Flows (Tabs 2-4)
Choose one of the 3 companies listed in your Instructor's Week 1 Announcement. THE Company is DELTA AIRLINES INC
Go to the Securities and Exchange Commission's EDGAR database and access your chosen company's most recent Form 10-K (annual report).
Make a Excel workbook, including data for your chosen company as follows:
oThe first tab (worksheet) in your Financial Statement Analysis Template must be labeled Company Information. The following information must be included:
Company Name and ticker symbol
Industry
Products or services offered
Major competitors
An example of this tab is provided in Exhibit A.
oThe second tab in your Financial Statement Analysis Template must be labeled Historical Income Statements.
Include the latest three years based on SEC filings.
Ensure that the worksheet includes a header with:
Company Name
Financial Statement Name (Income Statements)
Financial Statement Dates
Denomination level ($s in millions or thousands, etc.)
oThe third tab in your Financial Statement Analysis Template must be labeled Historical Balance Sheets.
Include the latest three years based on SEC (10-K) filings.(Note: Some 10-Ks only provided 2 years of balance sheet data.You may need to download the second most recent 10-K for your company in order to obtain 3 years of balance sheet data.)
Ensure that the worksheet includes a header with:
Company Name
Financial Statement Name
Financial Statement Dates
Denomination level ($s in millions or thousands, etc.)
A partial balance sheet example is provided in Exhibit B.
oThe fourth tab in your Financial Statement Analysis Template must be labeled Historical Statement of Cash Flows.
Include the latest three years based on SEC (10-K) filings.
Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:
Net Income from Income Statement agrees with Net Income on the Statement of Cash Flows.
Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet.
Ensure that the worksheet includes a header with:
Company Name
Financial Statement Name
Financial Statement Dates
Denomination level ($s in millions or thousands, etc.)
oOther instructions:
The Excel workbook should be professionally formatted.Professional formatting includes:
All numbers are formatted similarly.The use of decimals, commas for thousands, and other formatting is consistent.
Dollar signs are included in the first and last numbers of each column.
Subtotals and totals are preceded by a single underline.Totals are followed by a double underline.
All extraneous information is removed from the spreadsheet.Sometimes, files downloaded from the SEC website contains extra characters or other things that need to be deleted.
Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
All totals and subtotals should be calculated using formulas.For an example of which cells may need formulas, please see Exhibit B.
Excel Project: Part II Instructions
Competitor Income Statements, Balance Sheets, and Cash Flows (Tabs 5-7), and
Historical and Competitor Ratios (Tab 8)
Continue in the same Excel workbook prepared in Week 1, adding the following tabs:
oThe fifth tab in your Financial Statement Analysis Template must be labeled Competitor Income Statements
Include the latest income statement for the company selected for the Excel project along with two or three major competitors.(Only one year of data is shown for each company - the latest year available.)
oThe sixth tab in your Financial Statement Analysis Template must be labeled Competitor Balance Sheets
Include the latest Balance Sheet for the company selected for the Excel project along with two or three major competitors.(Only one year of data is shown for each company - the latest year available.)
oThe seventh tab in your Financial Statement Analysis Template must be labeled Competitor Statements of Cash Flows
Include the Statement of Cash Flows for the company selected for the Excel project along with two or three major competitors.
Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:
Net Income from Income statement agrees with Net Income on the Statement of Cash Flows
Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet
oThe eighth tab in your Financial Statement Analysis Template must be labeled Historical and Competitor Ratios
The list of ratios to be included are as follows.They should be grouped under the headings, as shown:
Liquidity Ratios
oCurrent Ratio
oQuick Ratio
Leverage Ratios
oDebt to Total Assets Ratio
oDebt Equity Ratio
oLong-Term Debt to Equity
oTimes Interest Earned Ratio
Activity Ratios
oInventory Turnover
oFixed Assets Turnover
oTotal Assets Turnover
oAccounts Receivable Turnover
oAverage Collection Period
Profitability Ratios
oGross Profit Margin
oOperating Profit Margin
oNet Profit Margin
oReturn on Total Assets (ROA)
oReturn on Stockholders' Equity (ROE)
oEarnings Per Share (EPS)
oPrice Earnings Ratio
Calculate the ratios for your chosen company for the last three years, linking the ratio calculations back to the historical financial statement tabs (Tabs 2-4) using formulas.
Calculate the ratios for each of your company's competitors (most recent year only), linking the ratio calculations to the competitor financial statements shown in Tabs 5-7 using formulas.
Using the internet, locate the industry averages for the ratios listed above, and include them in the final column of the ratio tab.Include a footnote on the tab to identify the source of the industry averages.
oOther instructions:
The Excel workbook should be professionally formatted.Professional formatting includes:
All numbers are formatted similarly.The use of decimals, commas for thousands, and other formatting is consistent.
Dollar signs are included in the first and last numbers of each column.
Subtotals and totals are preceded by a single underline.Totals are followed by a double underline.
Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
All totals and subtotals should be calculated using formulas.For an example of which cells may need formulas, please see Exhibit B.
Excel Project: Part III Instructions
Common Sized Statements (Tabs 9-10) and Horizontal Analysis (Tabs 11-12)
Continue in the same Excel workbook prepared in Week 3, adding the following tabs:
oThe ninth tab in your Financial Statement Analysis Template must be labeled Common Sized Balance Sheets.
Set-up like the Historical Balance Sheets (Tab 3), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Balance Sheets for the calculations."Total Assets" should be used as the base for all common sized calculations on the Balance Sheets.Common sized percentages should be calculated for all three historical years presented.
See Exhibit A for an example of this tab.
oThe tenth tab in your Financial Statement Analysis Template must be labeled Common Sized Income Statements.
Set-up like the Historical Income Statements (Tab 2), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Income Statements for the calculations."Revenue" or "Total Revenue" (depending on your company) should be used as the base for all common sized calculations on the Income Statements. Common sized percentages should be calculated for all three historical years presented.
oThe eleventh tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Balance Sheets.
Start by copying and pasting the Historical Balance Sheets from Tab 3 to this worksheet.Then, add dollar and percentage change columns between each of the set of historical years.
See Exhibit B for an example of this tab.
oThe twelfth tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Income Statements.
Start by copying and pasting the Historical Income Statements from Tab 2 to this worksheet.Then, add dollar and percentage change columns between each of the set of historical years.
oOther instructions:
The Excel workbook should be professionally formatted.Professional formatting includes:
All numbers are formatted similarly.The use of decimals, commas for thousands, and other formatting is consistent.
Dollar signs are included in the first and last numbers of each column.
Subtotals and totals are preceded by a single underline.Totals are followed by a double underline.
Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
All totals and subtotals should be calculated using formulas.For an example of which cells may need formulas, please see Exhibits A & B.
Excel Project: Part IV Instructions
Projected Financial Statements (Tabs 13-15)
Continue in the same Excel workbook prepared in Week 5, adding the following tabs:
oThe thirteenth tab in your Financial Statement Analysis Template must be labeled Projected Income Statements.Three years of projected statements should be included, starting with the most recent year after the company's last issued report.
oThe fourteenth tab in your Financial Statement Analysis Template must be labeled Projected Balance Sheets.Three years of projected statements should be included.Three years of projected statements should be included, starting with the most recent year after the company's last issued report.
oThe fifteenth tab in your Financial Statement Analysis Template must be labeled Projected Statement of Cash Flows.Three years of projected statements should be included, starting with the most recent year after the company's last issued report.
oOther instructions:
Projections should be based on research performed on your company and its industry.Use historical, trend, ratio data and current and future economic projections as well as information from the company's MD&A to aid in preparing projections.
Clearly state your assumptions in a text box at the bottom of each tab.Cite sources for assumptions based on research.
The statements should be consistent, reasonable, and accurate.Areas that will be checked for accuracy include:
The Balance Sheets should balance for all years presented.
The Ending Cash Balance on the Statement of Cash Flows should agree to the Cash Balance shown on the Balance Sheet for the same year.
Net Income on the Income Statements should match what is reported on the top of the Statement of Cash Flows (if indirect method is used).
The Excel workbook should be professionally formatted.Professional formatting includes:
All numbers are formatted similarly.The use of decimals, commas for thousands, and other formatting is consistent.
Dollar signs are included in the first and last numbers of each column.
Subtotals and totals are preceded by a single underline.Totals are followed by a double underline.
Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
All totals and subtotals should be calculated using formulas.
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