Good morning, I have attached my final project requirements along with my Excel spreadsheet for the ratios to be annotated. The answers are already in the spreadsheet, but I need someone to figure out the ratios. I have completed some answers already, but I need someone to complete the rest of the problems. I need this to be completed before noon today (October 20, 2013). Thank you, for your assistance.

Your Course Project Financial Statement Analysis ProjectA Comparative Analysis of Oracle Corporation and Microsoft Corporation Here is the link for the financial statements for Oracle Corporation for the fiscal year ending 2011. First, select 2011 using the drop-down arrow labeled for Year on the right-hand side of the page, and then select Annual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page. You should select the 10k dated 6/28/2011 and choose to download in PDF, Word, or Excel format. http://www.oracle.com/us/corporate/investor-relations/sec/index.html Here is the link for the financial statements for Microsoft Corporation for the fiscal year ending 2011. You should select the 10k dated 7/28/2011 and choose to download in Word or Excel format. http://www.microsoft.com/investor/SEC/default.aspx?year=2011&filing=annual A sample project template is available for download in Doc Sharing. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2009 financial statements of Tootsie Roll and Hershey provided in Appendix A and Appendix B of your textbook. Description This course contains a Course Project where you will be required to submit one draft of the project at the end of Week 5 and the final completed project at the end of Week 7. Using the financial statements for Oracle Corporation and Microsoft Corporation, respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2011 and prepare your comments about the liquidity, solvency, and profitability of the two companies based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in Week 7 and one grade will be assigned for the entire project. Overall Requirements For the Final Submission: Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this project. 1. A completed worksheet title page tab which is really a cover sheet with your name, the course, the date, your instructor's name, and the title for the project. 2. A completed worksheet profiles tab which contains a one-paragraph description regarding each company with information about their history, what products they sell, where they are located, etc. 3. All 18 ratios for each company with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios. 4. The Summary and Conclusions worksheet tab is an overall comparison of how each company compares in terms of the major category of ratios (liquidity, profitability, and solvency). A nice way to conclude is to state which company you think is the better investment and why. 5. The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference. Required Ratios for Final Project Submission 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Earnings per share Current ratio Gross profit rate Profit margin ratio Inventory turnover ratio Days in inventory Receivables turnover ratio Average collection period Asset turnover ratio Return on assets ratio Debt to total assets ratio Times interest earned ratio Payout ratio Return on common stockholders' equity ratio Free cash flow Current cash debt coverage ratio Cash debt coverage ratio Price/earnings ratio [For the purpose of this ratio, for Oracle, use the market price per share on May 30, 2011 and for Microsoft, use the market price per share on June 30, 2011.] The Excel files uploaded in the Dropboxes should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.). Please upload your final submission to the Week 7 Dropbox by the Sunday ending Week 7. For the Draft: Create an Excel spreadsheet or use the project template to show your computations for the first 12 ratios listed above. The more you can complete regarding the other requirements, the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file. Please upload your draft submission to the Week 5 Dropbox by the Sunday at the end of Week 5. Other Helpful information: If you feel uncomfortable with Excel, you can find many helpful references on Excel by performing a Google search. The Appendix to Chapter 13 contains ratio calculations and comparison comments related to Kellogg and General Mills so you will likely find this information helpful. BigCharts.com provides historical stock quotes. Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Syllabus. Grade Information The entire project will be graded by the instructor at the end of the final submission in Week 7 and one grade will be assigned for the entire project. The project will count for 18% of your overall course grade. Category Points % Description Documentation and Formatting 9 5% The report will be submitted in the form of an Excel Workbook, with each page (worksheet) of the workbook named appropriately. Please do not use any other software (such as MS Works or Lotus) to complete the project. A quality report will include a title worksheet tab, a worksheet tab for the profile of the two companies, a worksheet tab for the ratio calculations and comments, a worksheet tab for the summary and conclusion, proper citations if applicable, and a bibliography worksheet tab for the references. Organization and Cohesiveness 9 5% A quality report will include the content described above in the documentation and formatting section. The ratios should be listed in the same order in which they appear in the project information above. Editing 18 10% A quality report will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. Ratios will be expressed as numbers or percentages, depending on what is appropriate, as is shown in the textbook. Note that not all ratios are shown as percentages. Two decimal places is sufficient for each of the ratios. Content 144 80% A quality report will have correct ratio calculations and accurate supporting commentary. Any assumptions, if made, should be spelled out clearly. Supporting calculations must be shown either as a formula or as text typed into a different cell. Total 180 100% A quality report will meet or exceed all of the above requirements. Financial Ratios Earnings per Share = Net income - Preferred stock dividends/Average common shares outstanding (Remember, Number of Share Outstanding=Total Share value / Par value) Current Ratio = Current assets/Current liabilities Gross Profit Rate = Gross profit/Net sales (Remember, Gross Profit = Cost of Goods Sold - Net Sale) Profit Margin Ratio = Net income/Net sales Inventory Turnover Ratio = Cost of goods sold/Average inventory Days in Inventory = 365 days/Inventory turnover ratio Receivable Turnover Ratio = Net credit sales/Average net receivable (accounts receivable current year + accounts receivable prior year)/2) Average Collection Period = 365 days/Receivables turnover ratio Assets Turnover Ratio = Net sales/Average total assets Return on Assets Ratio = Net Income/Average total assets Debt to Total Assets Ratio = Total liabilities/Total assets Times Interest Earned Ratio = (Net income + Interest expense + Tax expense) / Interest expense Payout ratio = Cash dividends declared on common stock / Net income Return on Common Stockholders' Equity Ratio = (Net income - Preferred stock dividends) / Average common stockholder's equity Free Cash Flow = Cash provided by operations - Capital expenditures - Cash dividends Current Cash Debt Coverage ratio = Cash provided by operations/Average current liabilities Cash Debt Coverage ratio = Cash provided by operations/Average total liabilities Price/Earnings Ratio = Stock price per share/Earnings per share Maria C. Rivera ACCT FIN: Managerial Use , Analysis 10326 October 19, 2013 Professor Ganesh Pandit A Comparative Analysis of Oracle Corporation and Microsoft Corporation Oracle was originally founded on June 16, 1977 as Software Development Laboratories (SDL) in Santa Clara, California by Larry Ellison, Bob Miner, and Ed Oates. Oracle is the world's largest enterprise software company and a leading provider of computer hardware products and services. They develop, manufacture, market, distribute, and service database and middleware software to name a few. Oracle Corporation has its own headquarters in San Francisco Peninsula where it employs approximately 104,569 employees worlwide. Their net income was $8,547,000,000. Microsoft was originally founded in 1975. Their mission is to enable people and business throughout the world to to realize their full potential. They work to achieve this mission by creating technology that transforms the way people work, play and communicate. Microsoft develops and markets software, servies and hardware, which deliver greater opportunities to enahnce people's lives and have offices in over 100 countries. Microsoft also designed and created the XBOX 360 gaming and entertainment console as well as computer hardware products. Ther net income was $23,150,000,000. Oracle Earnings per Share Current ratio Gross Profit rate As given in the income statement Current assets Current liabilities $39,174 = $14,192 Net income Net sales Inventory turnover Cost of goods sold Average inventory 365 days inventory turnover $74,918 = $28,774 2.6 76.4% 54,366 = 69,943 77.7% 8,547 = 35,622 24% 23,150 = 69,943 33.1% = 29.9 $15,577 = $1,056 14.8 = 12 days 365 = 14.8 25 days = 281 Receivable turnover ratio Net credit sales Average net receiveables Average collection period 365 Receiveable turnover ratio = 63 days Net sales Average total assets = 0.53 Assets turnover ratio Microsoft $2.73 2.8 Gross proft amount Net sales Profit Margin ratio Days in inventory $1.69 2,675 = 5.8 $69,943 = $14,000 = $69,943 = $97,408 5 73 days 0.72 Revenue (net credit sales) = 69,943 average net receivables = 14000.5 ( 14987 + 13,014 / 2) Return on assets ratio Debt to total assets ratio Times interest earned ratio Net income Average total assets Total liabilities Total assets Oracle = 12.7% $33,290 = $73,535 Microsoft $23,150 = 23.8% $97,408 45.3% $51,621 = $108,704 47.5% 15.1 $25,378 = $264 96.2 Net income + int expense + tax expense interest expense = Cash dividend declared on common stock Net income 0.21 = 1.7 12.4% = 22.4% Net income - perferred stock dividend Average common stockholder's equity = 23.9% = 44.8% Cash provided by operations minus capital expenditures minus cash dividends paid = $9,703 = $19,459 Current cash debt coverage ratio Cash provided by operations Average current liabilities = 0.78 = 0.98 Cash debt coverage ratio Cash provided by operations Average total liabilities = 0.35 = 0.59 Payout ratio Return on common stockholder's equity Free cash flow Price/earnings ratio Market price as of 5/13/2011 for Oracle and as of 6/30/2011 for Microsoft EPS $34.02 = $1.70 20 $25.64 = $2.69 10 23,150 + 264 + 1964 = 25378 / 264 = 96.12 Financial ratios depict relationships between two or more financial and data of the organizations. These tools are useful when analyzing the performance of any given organization. Furthermore, it helps in comparing the performance, prediciting the future, giving information to various stakeholders for decision making processes. As an example, profitability ratios like Return on Equity (ROE) and Return on Assets (ROA) help in assessing the overall efficiency of the organization. Liquiditiy ratios help in knowing the short term solvency of the organization. Debt equity ratio helps in in finding solvency of the business. All of this data, provided by Oracle and Microsoft, were used to determine which company was a better investment choice. In my opinion Microsoft is the better choice. Bibliograhy Retreived October 19, 2013, from http://www.investopedia.com/termset_margin.asp