i have attached the assignment below please help fast

Objective: to obtain hands-on exposure with analyzing financial statements to determine the financial health of a company. REQUIRED 1. You are required to compare and contrast the financial health of any two of the paired companies and make a recommendation on which company you would invest in and why. Clear guidance is provided below. NOTE Pages 6-9 act as additional guidance and is a duplicate of some of the steps 1 thru 6: Group 1 2 3 4 5 6 7 8 9 2. Name Target Corporation Wal-Mart Stores, Inc. American Home Products Corporation Home Depot, Inc. (The) AT&T Inc. Verizon Communications Inc. Procter & Gamble Company (The) JOHNSON & JOHNSON Exxon Mobil Corporation ROYAL DUTCH SHELL PLC Polo Ralph Lauren Corporation Liz Claiborne, Inc. Nike Under Armour, Inc. REEBOK INTL LTD Adidas Citigroup, Inc. HSBC Holdings, plc. Symbol TGT WMT WYE HD T VZ PG JNJ XOM RDS/A RL LIZ NKE UARM RBK ADDYY C HBC Download the three (3) most recent 10-K financial statements for both companies. You need three (3) years of data. Download the most recent 10-Q financial statements for both companies. In addition, download the 10-Q for the companies for the same period one-year prior. For example, if the most recent 10-Q is 3rd Quarter of 2016, you also need 10-Q for 3rd Quarter of 2015. Financial statements (10-K & 10-Q) MUST be accessed through the SEC website. a) Web address: http://www.sec.gov/; a) go to company filings; b) enter ticker symbol or company name; example SBUX c) click on the CIK to view company filings d) in \"filing type\" insert 10-K or 10-Q e) click on interactive data (you can then download the excel file with all the financial statements and description of the company's operations). 2. Perform Horizontal Analysis for the most recent 2 years on the selected companies Balance Sheet and Income Statement. (Note - As stated in #1 above, you will need 3 years financials to perform this step) 3. Perform a Trend (Horizontal) Analysis for the 3 years or more on the selected companies Balance Sheet and Income Statement. Perform similar steps to the bullet points in Step # 2 above, and compare to the Horizontal Analysis to ACC 102 FINANCIAL STATEMENT ANALYSIS PROJECT 4. Perform a Vertical Analysis for 2 years on the selected companies Balance Sheet and Income Statement. Prepare Financial Ratio Analysis Perform 2 years of comprehensive financial ratio analysis for the companies selected - Liquidity, Profitability and Financial Risk. The ratios should serve as a basis to determine the financial health of the company. (Note - As stated in #1 above, you will need 3 years financials for some ratios to perform this step) Write your analysis and interpretation of the financial ratios calculated (Definitions are not needed). Profitability Ratios Liquidity Ratios Financial Risk Ratios What conclusions can be drawn from each ratio analysis Profitability Ratios Liquidity Ratios Financial Risk Ratios 2 ACC 102 FINANCIAL STATEMENT ANALYSIS PROJECT RATIOS Financial Statement Analysis A. Profitability - the ability to earn satisfactory income (profit) B. Liquidity - the ability to pay bills when due and meet unexpected cash needs. C. Financial Risk - ability to survive in good and bad economic times. The aim is to detect early signs of financial difficulty. D. Effective management of operating assets - ability to manage operating assets and liabilities in the operating cycle. Operating cycle - the time it takes from acquiring inventory, selling it and then collect for it. Acquire inventory on credit sell inventory on credit. Collect the outstanding receivable and pay the outstanding payables. E. Supplemental- Liquidity and operating asset MGT F. Market strength - How does investors view the potential return and the risk of owning the company's stock. A. Profitability Ratios 1. Profit Margin = NI/Net Revenues This ratio shows the amount of income that was generated by each $1 of sales. 2. Asset turnover = Net Revenues/Ave total assets This ratio shows the amount of revenue generated by each $1 of assets. 3. Return on Assets = NI/Ave Total assets This ratio shows the amount of income generated by each $1 of assets. PM X Assets T/O = ROA B. Liquidity Ratios 1. Cash flow yield = Net cash flows from operating activities/Net Income-. This ratio shows the amount of operating cash generated by each $1 of net income. 2. Cash flows to sales = Net cash flows from operating activitieset revenues This ratio shows the amount of operating cash generated by each $1 of sales. 3. Cash flows to assets = Net cash from operating activities/Ave total assetsThis ratio shows the amount of operating cash generated by each $1 assets. 4. Free Cash flows - How much cash is left over after providing for commitments of net capital expenditures and dividends = Net CF from operating activities net capital expenditures - dividend C. Financial Risk Ratios 1. Debt to equity = Tot liabilities/Stockholders' equity This ratio shows the company's level of financial risk. A = L + OE 2. Return on equity = NI/AVG SHE This ratio shows the amount of NI generated for every $1 invested by owners. 3. Interest coverage = EBIT/ Interest Expense This ratio shows the amount of times income covered interest expense? D. Operating Asset Management Ratios 3 ACC 102 FINANCIAL STATEMENT ANALYSIS PROJECT 1. Inventory Turnover = COGS/Ave Inventory This ratio shows the amount of times the company sold its inventory during the accounting period. 2. Days inventory on hand- # of days in acct period/Inventory Turnover This ratio shows the number of days it took the company to sell its inventory. 3. Receivable Turnover = Net sales/Ave Account Receivable This ratio shows the number of times the company collected its Accounts Receivable during the accounting period. 4. Days sales Uncollected = # of days in acct period/Account receivable Turnover This ratio shows the number of days it takes the company to collect its accounts receivable. 5. Payable Turnover = COGS vg inventory/Avg accounts payable This ratio shows the number of times the company paid its account payable during the accounting period. 6. Days Payable = Days in the accounting period/Payable Turnover This ratio shows the number of days did it take the company to pay its Account payable. Financing period- the number of days of financing needed to pay payables = (# of days needed to sell inventory + # of days needed to collect rec) less the # of days needed to pay payables. = (days inventory on hand +days sales uncollected) - days payable E. Supplemental financial ratios for assessing liquidity and operate asset mgt 1. F. Current ratios = CA/CL - How many times did total CA cover CL 2. Quick ratios = Cash +MS+AR/CL - How many times did current financial assets cover CL Market Strength ratios 1. Price/Earnings ratio =MKT price per share/ EPS This ratio shows the value that the market placed on the company's earning 2. Dividend yield = Dividends per share/ market price per share This ratio shows the rate of return from dividend on each share of stock. 4