Go to that company's website and go to Investor information section.

You need Audited Financial Statements which are usually available on the website.

Pick one that does provided audited financials.

START NOW!!

Note: Tables and PDFs do not get along! -some stray characters in table- but you will understand the idea.

Be sure to use audited financial statements.

Financial Statement Analysis Project

(100 points)

This project will cover the topics / concepts covered in the class.

PRINT THIS OUT AND START WORKING ON THIS AS SOON AS POSSIBLE.

Below are the requirements of the Financial Statement Analysis, which is due at the end of week six:

Financial Statement Analysis General Description:

In order to reinforce the concepts and provide practical application of concepts learned in class, a project requiring students to complete a Financial Statement Analysis is included as part of this course.

Specific Requirements:

• The Financial Statement (F/S) analysis should involve downloading a company?s financial statements and providing an in-depth report on the company?s economic condition through ratio analysis and answering of specific questions. You choose a company from the internet- maybe one which you always wanted to know about. Be careful to not become ?bogged down? in the volume of data in an annual Report/ Financial Statement. Choose carefully.

• • Create a in-depth Financial Statement analysis report with the following elements (use chapter 9 as a guide for this project):

• • • Perform a Horizontal Analysis of the financial statements (Balance Sheet Assets/ Liabilities and Equity; Current Assets; Comparative Income statement and Retained Earnings) Chapter 9 (pages 323-351) ? summary Exhibit 10 page 342. A minimum of 20 ratios must be calculated- show work in a separate schedule. Approximate worth 20%
    • Perform a Vertical Analysis of the financial statements (Balance Sheet Assets/ Liabilities and Equity; Current Assets; Comparative Income statement) Chapter 9 (pages 323-351) ? summary Exhibit 10 page 342. A minimum of 20 ratios must be calculated- show work in a separate schedule. Approximate worth 20%
    • Perform a Solvency and Profitability Analysis of the financial statements. Calculate at least 10 ratios. Approximate worth 20%
    • Create an in-depth Financial Statement Analysis report discussing the above F/S analyses. This report must convey the results of the Horizontal Analysis, Vertical Analysis, the Solvency Analysis and Profitability Analysis of the financial statements. Detail the following expected future results and perceived issues of the chosen corporation. Approximate worth 40%

Work output:

Excel spreadsheet with clear ratio analysis performed so it can be graded

Word document - in-depth Financial Statement analysis report

Due at end of week 6; worth 100 points

Required Financial Statement analysis project Grading Rubric:

• 90 ? 100% F/S analysis project meets all requirements in length and content; shows excellent understanding of the material; AND grammar, structure, and spelling are at college level.
• 80 ? 89% F/S analysis project meets all requirements in length and content; shows a good understanding of the material; AND grammar, structure, and spelling are at college level.
• 70 ? 79% F/S analysis project meets all requirements in length and content; shows some understanding of the material; AND/OR grammar, structure, and spelling need some improvement.
• 62 ? 69% F/S analysis project meets bare minimum requirements in length and content; lacks some key understanding of the material; AND/OR grammar, structure, and spelling need a lot of improvement.
• 0 ? 62% F/S analysis project study does not meet minimum requirements in length and content; OR grammar, structure, and spelling are not at college level.

Enjoy!! J

Student ACCT200 Financial Statement Analysis Project Student Davenport University June 23, 2014 FINANCIAL ANALYSIS REPORT Sample Company: Dell, Inc. Industry: Computer Systems Periods: One fiscal year against the previous fiscal years Upon basing on the data provided at Dell's website, this financial report provided a summary of how the company perform based on liquidity, profits and profit's margin, sales and sales margin, borrowing and borrowing profitability and assets. The company's liquidity position based on the raw data provided indicates that it stands above average for the industry in which it belongs and operates. Although the liquidity showed adequate assets, this does not necessarily mean that the company won't have any trouble paying bills but it clearly showed that the company is in a good position against the competing market. With Dell's net profit margin, it is indicative that an increased happened. It did not show a very high increase, although there is a slight difference on the percentage from 19.1 % to 20.1%, these are because the products are sold in a fixed price, the net profit margin should generally rise if the company generates more sales and the gross profit dollars increases than the last period. The raw data also indicate that Dell is doing a great job in raising sales. The data also shows that the company is utilizing fixed assets more effectively that the last fiscal years. In terms of borrowing profitability, the company's data provided a mixed result. Profitability has improved from last year but total debt has rose in a much faster rate than normal. In terms of assets profitability, the assets purchases can often indicate a long-term profitability. 2 Horizontal & Vertical Analysis: Dell Inc. Year Year 2013 - in 2012 - in Year 2011 million million in million $ Balance Sheet Cash Short Term Investments Account Receivable Inventory Other Current Assets Total Current Assets $ Horizontal Analysis Vertical Analysis $ 13,913 452 10,136 1,301 3,219 29,021 $10,635 $373 $8,543 $1,051 $3,643 $24,245 $8,352 $740 $6,443 $867 $3,749 $20,151 30.82% 21.18% 18.65% 23.79% -11.64% 19.70% 47.94% 1.56% 34.93% 4.48% 11.09% 100.00% Long Term Investments PP&E Net Goodwill Intangibles Other Assets 1,503 1,953 4,365 1,495 262 $1,113 $2,181 $4,074 $1,694 $345 $954 $2,277 $1,737 $724 $657 35.04% -10.45% 7.14% -11.75% -24.06% 5.18% 6.73% 15.04% 5.15% 0.90% Total Assets Accounts Payable Short/Current Debt Other Current Liabilities Total Current Liabilities 38,599 15,474 851 3,158 19,483 $33,652 $15,257 $663 $3,040 $18,960 $26,500 $12,045 $113 $2,701 $14,859 14.70% 1.42% 28.36% 3.88% 2.76% 133.00% 53.32% 2.93% 10.88% 67.13% 5,146 6,204 0 $3,417 $5,634 $0 $1,898 $5,472 $0 50.60% 10.12% 17.73% 21.38% 30,833 $28,011 $22,229 10.07% 106.24% 0 11,797 0 24,744 -28,704 -71 $0 $11,472 $0 $22,110 -$27,904 -$37 $0 $11,189 $0 $20,677 -$27,904 $309 2.83% 40.65% 11.91% 2.87% 91.89% 85.26% -98.91% -0.24% 7,766 $5,641 $4,271 37.67% 26.76% Long Term Debr Other Liabilities Minority Interest Total Liabilities Preferred Stock Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Other Equity Total Equity for Stockholders 3 Ratio Analysis: Growth Ratios Sales Growth Income Growth Asset Growth 16.2% 83.9% 14.7% -13.4% -42.2% 27.0% -0.1% -15.9% -3.8% Acitivity Ratios Receivable Turnover Inventory Turnover Fixed Asset Turnover 6.6% 41.8% 31.5% 71.0% 44.6% 24.3% 8.6% 48.2% 26.8% Profit Ratios Profit Margin Return on Assets Return on Equity 4.3% 7.3% 39.3% 2.7% 4.8% 28.9% 4.1% 9.2% 61.9% Liquidity Ratios Current Ratio Quick Ratio 1.5% 1.4% 1.3% 1.2% 1.4% 1.3% 0.8% 17.8% 0.8% 13.7% 0.8% 36.7% Solvency Ratios Debt to Total Assets Times Interest Earned (accrual) The data calculated above shows that the revenues mostly came from the sales of Dell's products and services. The revenue showed an increased of a combined 16 % from 1 fiscal year to another. Cost of goods and services have been relatively stable showing as a percentage of revenue for the past 3 fiscal years. Other expenses of the company indicated such as selling & administrative expenses, R&D expenses, depreciation expenses have shown a constant value in the last three years. The net income performance of the company has been extremely well for fiscal year 2013, which is indicative in the increase shown from the previous years. Current assets accounts increased 76% from the previous years. The property, plant and equipment (PPE) account does 4 not show a very accounting in the company's balance sheet. It only showed at least 5% of Dell's total assets. All in all, the company had a good fiscal year and had shown an improvement to its ability to generate more profit. Ratio formula calculation for Ratio Analysis: Sales Growth = (Current year sales - prior year sales) / Base year sales Income Growth = (Current net income - prior net income) / base net income Asset Growth = (Prior Asset Value - Current Asset Value) / Base Asset Value Receivable Turnover = Net Sales / Average Accounts receivable, net Inventory Turnover = Cost of Goods Sold / Average Inventory Fixed Asset Turnover = Net Sales / Net PPE Profit Margin = Net income / net sales Return on Assets = Net income / average total assets Return on Equity = (Net income - Preferred dividends) / Average common equity Current Ratio = Current assets / Current liabilities Quick Ratio = (Current assets - inventories) / current liabilities Debt to Total Assets = total liabilities / total assets Times Interest Earned = income before interest expense and income taxes / interest expense 5