Hi, I need the below ASAP Action Items

1. complete your assigned Company Activity questions.

• Activity 106: Test Your Understanding - Carnival Corporation

1. 1. Work to develop an 8 to 12 slide PowerPoint presentation reflecting a complete analysis of your company's financial statements. In general, each slide should provide the key relevant information/data and your oral presentation should provide supplemental detail. Your PowerPoint presentation should be/include:
   1. a. 10 to 15 minutes in length.
   2. b. A brief introduction of your company.
   3. c. Analysis of the company's financial statementratiosandrelevantinformation. Note: Accuracy points for this assignment will be based on this information.
   4. d. A brief summary of the last company question under "Other."
   5. e. A reference page (last slide).
2. 2. Write a memo to a friend recommending whether or not your company would be a good investment opportunity. Your memo should be/include:
   1. a. One-pagein length, single-spaced, and To/From/Date format.
   2. b. An introductory paragraph of the company.
   3. c. Providefivegood observations in support of your recommendation. Note:Numberyour observations from 1 to 5 and provide an analytical discussion for each one.
   4. d. Closing paragraph that provides your recommendation.

ACTIVITY 106 Purpose: TEST YOUR UNDERSTANDINGCARNIVAL CORPORATION Analyze the income statement, the balance sheet, and the statement of cash flows. Prepare a statement of retained earnings. Carnival Corporation (CCL) ASSETS Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets TOTAL Current assets Property, plant, and equipment Accumulated depreciation PPE, net Goodwill and other intangibles Long-term investments Other noncurrent assets ($ in millions) 11/30/Year 3 11/30/Year 2 1,178 9 408 250 370 2,215 25,331 (4,019) 21,312 4,488 0 417 $ 643 17 409 240 419 1,728 24,184 (3,361) 20,823 4,627 0 458 $ 610 461 403 171 487 2,132 20,073 (2,551) 17,522 4,355 0 482 $ 667 39 108 91 227 1,132 12,103 (1,987) 10,116 681 0 406 $ 28,432 $ 27,636 $ 24,491 $ 12,335 634 94 392 568 1,622 3,310 6,918 0 470 7,388 $ 269 0 155 290 906 1,620 3,014 0 283 3,297 $ 690 583 1,042 832 2,045 5,192 5,727 0 541 6,268 TOTAL Liabilities STOCKHOLDERS' EQUITY Preferred stock Common stock, par Additional paid-in capital Retained earnings Other stockholders' equity Treasury stock $ 631 981 681 721 2,020 5,034 6,291 0 551 6,842 $ 11,460 10,698 4,917 0 359 7,311 8,623 525 (1,058) 0 355 7,163 7,191 142 (1,058) 0 6 1,089 6,326 (3) 0 16,972 $ 11,876 0 359 7,381 10,233 143 (1,144) TOTAL Stockholders' equity TOTAL L & SE 11/30/Year 4 $ TOTAL Assets LIABILITIES Accounts payable Short-term debt Current portion of long-term debt Accrued expenses Other current liabilities TOTAL Current liabilities Long-term debt Deferred income taxes Other noncurrent liabilities TOTAL Noncurrent liabilities BALANCE SHEET 11/30/Year 5 15,760 13,793 7,418 28,432 $ 27,636 $ 24,491 $ 12,335 Carnival Corporation (CCL) INCOME STATEMENT For the years ended November 30, Revenue Cost of goods sold (COGS) Gross profit Selling, general, and admin expense (SGA) Depreciation and amortization expense Other operating expenses Total operating expenses Operating income Interest income (expense) and other Total nonoperating revenue (expense) Income before income tax Provision for income tax Income from continuing operations Nonrecurring items / Minority interest Net income Outstanding shares (in millions) Carnival Corporation(CCL) Year 5 $ $ $ $ 9,427 4,244 5,183 2,288 812 (90) 3,010 2,173 (284) 12 1,901 47 1,854 0 1,854 802 STATEMENT OF CASH FLOWS Year 5 For the years ended November 30, Cash flows from (for) operating activities Net income (loss) Depreciation and amortization Operating (gains) losses Changes in working capital Net cash from operating activities Cash flows from (for) investing activities Sale of property, plant, and equipment Sale of investments Purchase of property, plant, and equipment Purchase of investments Other investing cash flow items Net cash (for) investing activities Cash flows from (for) financing activities Issuance of debt Issuance of capital stock Repayment of debt Repurchase of capital stock Cash dividends paid Other financing cash flow items Net cash from (for) financing activities Effect of exchange rate changes Net change in cash + Beginning cash and cash equivalents = Ending cash and cash equivalents Supplemental information Cash interest paid Cash taxes paid Free cash flow 10,735 4,822 5,913 2,474 902 (102) 3,274 2,639 (330) 21 2,330 73 2,257 0 2,257 806 ($ in millions) Year 4 $ 2,257 902 45 206 3,410 $ $ 314 15 867 $ $ $ $ $ 4,244 1,764 2,480 1,067 382 (11) 1,438 1,042 (111) 28 959 (57) 1,016 0 1,016 587 Year 3 $ 1,194 585 22 132 1,933 1,016 382 54 17 1,469 0 0 (2,516) 0 83 (2,433) 0 0 (1,986) 0 (75) (2,061) 881 112 (736) 0 (400) 64 (79) (15) 33 610 643 1,751 42 (898) 0 (292) (137) 466 (23) (57) 667 610 232 7 (190) 0 (246) (1) (198) (5) (795) 1,462 667 156 20 (875) 110 0 (763) 250 8 (770) $ Year 2 0 0 (3,586) 0 497 (3,089) $ 1,854 812 28 522 3,216 6,459 2,880 3,579 1,680 585 (69) 2,196 2,173 (195) (755) 1,223 29 1,194 0 1,194 718 Year 2 ($ in millions) Year 4 0 0 (1,977) 0 7 (1,970) 910 50 (912) (305) (566) (69) (892) (13) 535 643 1,178 Year 3 $ $ Refer to the financial statements presented for Carnival Corporation on the previous two pages to answer the following questions. BALANCE SHEET Q1 Review the following accounts, subtotals, and totals; (1) describe your observations; and then (2) identify what your observations indicate. A response is given for PPE, net to help with understanding. a. Property, plant, and equipment, net... increased from $10,116 million in Year 2 to $21,312 million in Year 5, an increase of 111%, indicating purchases of additional cruise ships for expansion. The greatest increase was in Year 3, when PPE increased by more than 50%. b. Goodwill and other intangibles... c. Long-term debt... d. Contributed capital totals _________ million at the end of Year 5... e. Retained earnings... Q2 Compute the ratios requested in the chart below. For ratio formulas and explanation refer to Appendix B Ratios. Carnival Corporation Current ratio Debt ratio Times Interest Earned * Industry Norm* 0.50 63% 8.00 Year 5 Year 3 Industry: Resorts and CasinosIndustry and S&P 500 ratio averages from money.msn.com For each ratio, (a) compare the two years of ratios and circle the ratio indicating lower financial risk, (b) cross out any ratio indicating greater financial risk than the industry norm, and (c) comment on the results. Q3 Overall, the balance sheet and related ratios indicate a (strengthening / steady / weakening) financial position. Why? List observations that support your conclusion and explain why. INCOME STATEMENT Q4 Revenues were __________ million for the earliest year reported and ___________ million for the most recent year reported. Since the earliest year reported, this account has changed by ___________ million, which is a(n) ___________ (increase / decrease). During the same time period, COGS (increased / decreased) by ___________, operating expenses (other than COGS) (increased / decreased) by ___________, and net income (increased / decreased) by ___________. Q5 Compute the ratios requested in the chart below. For ratio formulas and explanation refer to Appendix B Ratios. Carnival Corporation Gross profit margin ROS ROA ROE Asset turnover * Industry Norm* 50.8% 16.8% 6.7% 12.2% 0.40 Year 5 Year 3 Industry: Resorts and CasinosIndustry and S&P 500 ratio averages from money.msn.com For each ratio, (a) circle the stronger company ratio, (b) cross out any company ratio that is weaker than the industry norm, and (c) comment on the results. Q6 The income statement and related ratios indicate (strengthening / steady / weakening) earnings potential. Why? List observations that support your conclusion and explain why. STATEMENT OF CASH FLOWS Q7 The primary source of cash was (operating / investing / financing), which is a(n) (favorable / unfavorable) sign. For property, plant, and equipment a net cash (inflow / outflow) was reported in the (operating / investing / financing) activity section so PPE was (purchased / sold), which is a(n) (favorable / unfavorable) sign indicating... A net cash inflow for debt occurred during Year (5 / 4 / 3 / 2), indicating more debt was (borrowed / repaid). These amounts appear to have primarily financed (operations / the purchase of PPE / the repurchase of common stock). A net cash inflow for capital stock occurred during Year (5 / 4 / 3 / 2), indicating more capital stock was (issued / repurchased). This is a(n) (favorable / unfavorable) sign indicating... Q8 Net cash from operating activities (increased / decreased) by ___________ million or ___________. During the same time period, dividends paid (increased / decreased) by ___________. Q9 Compute the ratios requested in the chart below. For ratio formulas and explanation refer to Appendix B Ratios. Carnival Corporation Free cash flow ($ in millions) Cash flow adequacy ratio Cash flow liquidity ratio Quality of income ratio Industry Norm NA NA NA NA Year 5 $ Year 3 $ For each ratio, (a) circle the company ratio with the least amount of risk and (b) comment on the results. Q10 Complete the common-size Statement of Cash Flows for Year 5. Only select accounts are reported below. Carnival Corporation STATEMENT OF CASH FLOWS Common-Size ($ in millions) For the years ended November 30, Net cash from operating activities Purchase of PPE Issuance of debt Issuance of capital stock Repayment of debt Repurchase of capital stock Cash dividends paid Net change in cash Year 5 Year 5 ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ $ 535 15.69% Year 3 $ 1,933 (2,516) 1,751 42 (898) 0 (292) $ (57) Year 3 100.00% -130.16% 90.58% 2.17% -46.46% 0.00% -15.11% -2.95% * Only select amounts are listed above and will not necessarily sum to the total. In Year 3, the primary use of cash was (purchasing PPE / repaying debt / paying dividends) using ________ of NCOA, whereas in Year 5, the primary use of cash was (purchasing PPE / repaying debt / paying dividends) using ________of NCOA. Q11 The statement of cash flows indicates a (strengthening / steady / weakening) cash position. Comment on your observations. Why? STATEMENT OF RETAINED EARNINGS Q12 Complete the statement of retained earnings below. Carnival Corporation STATEMENT OF RETAINED EARNINGS ($ in millions) For the years ended November 30, Retained earnings, beginning Net income Dividends Other adjustments Retained earnings, ending Year 5 Year 4 Year 3 Year 2 $ ______ ______ ______ $ ______ ______ ______ $ ______ ______ ______ $ 5,556 1,016 (246) (0) $ 6,326 (81) $ ______ (22) $ ______ (37) $ _____ Net income is initially reported on the (balance sheet / income statement / statement of cash flows) and dividends paid are initially reported on the (balance sheet / income statement / statement of cash flows). OTHER Q13 Based on the financial statements presented for Carnival Corporation, would you invest in this company? (Yes / No) Why? Support your response by listing at least five significant observations