Home Page Layout Formulas Data Review View Calibri - 14 Custom Autosum Paste Wrap Text it Merge & Center BIU- Fill - ainter A - Insert Delete Format Sort & Find 8. Conditional Format Cell Formatting as Table Styles Styles 2 Clear Font Alignment Number cells Editing f 170 C D E F H Consolidated Balance Sheets - USD ($) $ in Millions B Dec. 31, 2019 Dec. 31, 2018 2 CURRENT ASSETS: 3 Cash and cash equivalents 4 Receivables, net 5 Inventory 6 Other current assets 7 Total Current Assets 8 PROPERTY AND EQUIPMENT, NET 9 OPERATING LEASE ASSETS 10 GOODWILL 11 OTHER INTANGIBLE ASSETS, NET 12 OTHER ASSETS 13 Total Assets 14 CURRENT LIABILITIES: 15 Vehicle floorplan payable 16 Accounts payable 17 Commercial paper 18 Current maturities of long-term debt 19 Other current liabilities Consolidated Balance Sheets Consolidated Statements of Inco $ 42.0 $48.6 $ 916.7 $976.2 $ 3,305.8 $3,650.5 $ 146.6 $ 208.7 $ 4,411.1 $ 4,884.0 $3,174.6 $3,155.3 $ 333.1 $ 0.0 $ 1,501.9 $1,513.2 $ 581.6 $ 595.4 $ 541.0 $ 517.2 $ 3,575.8 $3,997.7 $ 290.3 $ 306.2 $ 170.0 $ 630.0 $ 355.6 $ 44.3 $ 708.5 $ 679.9 Consoldated States of cash VIEW View cut Calibri 14 Copy - Agosu- B U Paste Format Painter Clipboard Wrap Text Custom Merge a Center - -% Conditional Format Cell Formatting as Table Styles Alignment Number Styles Fil- Insert Delete Format Font Clear Sort Find Filter - Seled - Editing B17 170 B D E F G H A 18 Current maturities of long-term debt $ 355.6 $44.3 19 Other current liabilities $ 708.5 $ 679.9 20 Total Current Liabilities $ 5,100.2 $ 5,658.1 21 LONG-TERM DEBT, NET OF CURRENT MATURITIES $1,578.5 $ 1,926.2 22 NONCURRENT OPERATING LEASE LIABILITIES $ 305.0 $ 0.0 23 DEFERRED INCOME TAXES $ 135.1 $89.8 24 OTHER LIABILITIES $262.4 $ 275.0 25 TOTAL LIABILITIES $7,381.2 $ 7,949.1 26 COMMITMENTS AND CONTINGENCIES (Note 19) 27 SHAREHOLDERS' EQUITY: Preferred stock, par value $0.01 per share; 5,000,000 shares $ 0.0 $ 0.0 28 authorized; none issued Common stock, par value $0.01 per share; 1,500,000,000 shares $1.0 $ 1.0 authorized; 102,562,149 shares issued at December 31, 2019, and 29 December 31, 2018, including shares held in treasury 30 Additional paid-in capital $ 35.9 $ 20.8 31 Retained earnings $ 3,688.3 $3,238.3 $ (563.1) Treasury stock, at cost; 13,212,974 and 12,540,065 shares held, $(544.1) 32 33 Total Shareholders' Equity $ 3,162.1 $ 2,716.0 34 Total Liabilities and Shareholders' Equity Consolidated Balance Sheets Consoldated Statements of inco Consoldated Statements of Cash 14 Ready e Uue Aug SUUY 11.Jul POTU Submitting a nie upload File Types xls xlsx, doc, and docx ements This assignment requires two files to be uploaded. Do not hit submit until you have selected both files. Chapter 14 of your textbook describes several ratios as well as vertical analysis and horizontal analysis of financial statements. Using the annual report and excelfile of financial statements for AutoNation, prepare the following items. Use the spreadsheet provided and modify it with your calculations. Just be sure to change the file name to something with your name in it. You must use spreadsheets (and formulas) for this assignment. Common Size Balance Sheet Prepare a spreadsheet with common size balance sheets for the years ended December 31, 2019 and 2018. For 2019, each line item should be shown as a percentage of total assets on December 31, 2019. Likewise, for 2018, each item should be shown as a percentage of total assets on December 31, 2018 in your calculations, round each percentage to three digits. For example if cash as a percentage of total assets is.054029834. your answer should be shown as 5.4%. These numbers on the financial statements are rounded to the nearest million, so it is a bit silly to show calculations with more precision than the underlying data. ents ons Common Size Income Statement e Course Prepare a spreadsheet with common size income statements for the 2019 and 2018 fiscal years. You do not need to do 2017. In this case, your denominator will be Revenues. Again, remember to round. Horizontal Analysis of both financial statements Prepare a horizontal analysis of the balance sheet and income statement showing the percentage change from 2018 to 2019 (the dollar amounts, not the percentages you calculated in the common size statements). This is calculated as follows: (2019 amount - 2018 amount)/2018 amount Thus, each line item on the balance sheet and income statement should show a percentage increase or decrease. A negative number, or decrease, can be formatted to show in parentheses, which is the preferable notation in accounting circles. Ratios Calculate all of the ratios listed in exhibit 14-26 (page 662). "Summary of Analytical Measures" for AutoNation in 2019 (you do not need to do ratios for 2018. Also calculate the Debt/Equity ratio, which is Total Liabilities/Total Owners Equity (this is not in the book but will be discussed in class). "You also do not need to calculate EPS. It is shown on the income statement In any place where the formula calls for an average, use the 2019 number plus the 2018 number divided by 2 EXHIBIT 14-26 Summary of Analytical Measures Ratios or Other Measurements Method of Computation Significance Measures of short-term liquidity Current ratio Current Assets Current Liabilities Quick ratio Quick Assets Current Liabilities Current Assets - Current Liabilities Working capital Net cash provided by operating activities Appears in the statement of cash flows Cash flow from operations to current liabilities Cash Flows from Operating Activities Current Liabilities Accounts receivab turnover rate A measure of short-term debt paying ability A measure of short-term debt-paying ability A measure of short-term debt-paying ability Indicates the cash generated by operations after allowing for cash payment of expenses and operat- ing liabilities Indicates ability to cover currently maturing obligations from recurring operations Indicates how quickly receivables are collected Indicates in days how quickly receivables are collected Indicates how quickly inventory sells Indicates in days how quickly inventory sells Indicates in days how quickly cash invested in inventory converts back into cash Excess of operating cash flow over basic needs Net Sales Average Accounts Receivable 365 Days Accounts Receivable Turnover Rate Cost of Goods Sold Average Inventory 365 Days Inventory Turnover Rate Days to Sell Inventory+ Days to Collect Receivables Days to collect average accounts receivable Inventory turnover rate Days to sell the average inventory Operating cycle Free cash flow Net Cash from Operating Activities - Cash Used for Investing Activities and Dividends Days to sell the average inventory Average Inventory 365 Days Inventory Turnover Rate Days to Sell Inventory + Days to Collect Receivables Operating cycle Inventory sells Indicates in days how quickly inventory sells Indicates in days how quickly cash invested in inventory converts back into cash Excess of operating cash flow over basic needs Free cash flow Net Cash from Operating Activities - Cash Used for Investing Activities and Dividends Measures of long-term credit risk Debt ratio Total Liabilities Total Assets Trend in net cash provided by operating activities Appears in comparative statements of cash flows Percentage of assets financed by creditors, indicates relative size of the equity position Indicator of a company's ability to generate the cash necessary to meet its obligations Indicator of a company's ability to meet its interest payment obligations Interest coverage ratio Income before Interest and Taxes Annual Interest Expense Measures of profitability Percentage changes, that is, in net sales and net income Dollar Amount of Change Financial Statement Amount in the Earlier Year Gross profit rate Gross Profit Net Sales Operating Expenses Net Sales The rate at which a key measure is increasing or decreasing the "growth rate A measure of the profitability of the company's products A measure of management's ability to control expenses Operating expense ratio